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Introduction to Marketing Management

What is Marketing?

Marketing is a social process by which individuals and groups obtainbwhat they need and want through creating, offering and freely exchanging products and services of value with others.

– Philip Kotler-

Also Marketing can consider as the managing profitable customer relationship.

What is Marketed?

  • Goods – eg: jewelry, furniture
  • Services – eg: lecturing
  • Experiences – eg: Theme park
  • Events – eg: ICC World Cup
  • Plces – eg: pyramids
  • Properties – eg: Tangible – land Intangible – shares
  • Organizations – eg: Lion club
  • Ideas – eg: consultant

Marketing Process

A simple model of the marketing process. In here each steps have their own value added activities.

1. Understand the market place and customer needs and wants.

2. Design a customer driven marketing strategy.

To design a Marketing Strategy the marketing manager must find answers for 2 questions.

  • What customers will we serve
  • How can we serve these customers

3. Construct an integrated marketing program that delivers superior value.

4. Build profitable relationship and create customer delight.

5. Capture value from customers to create profits and customer quality.

In first 4 steps,

Companies work to understand consumers, create customer value and build strong customer relationship.

In 5th step,

Companies reap the rewards of creating superior customer value by creating values for customers.

Importance of Marketing

  • Marketing has ever growing competition in the market place.
  • Financial success often depends on the marketing ability.
  • To ensure profitability and survival.
  • Customers tendency to become more and more demanding. (Information technology, globalization)

Core Marketing Concepts

Marketing Concept is a customer centered philosophy.

  • Needs, wants and demand

Needs – states of felt deprivation.

It includes physical needs for food, clothing, wormth and safety.

As a social needs it includes belonging and affection.

Individual needs for knowledge and self- expression.

Wants are the form human needs take as they are shaped by culture and individual personality.

  • Market offering

Customers needs and wants are fulfilled through market offering.

This consist with physical products and services.

Products is any offering that can satisfy a need or wants.

In addition it include other entities such as persons, places, organizations, information and ideas.

  • Customer Value and Satisfaction

Customer value – Difference between the values that the customer gains from owning and using a product versus the costs of obtaining the product.

Customer Satisfaction – The extent to which a product’s perceived performance in delivering value matches a buyer’s expectations.

Marketers must be careful to set the right level of expectations.

Expectations are too low – they must safisfy those who buy the product. But fail to attract enough buyers.

Expectations are too high – Buyers will be disappointed.

This is a key part for developing and managing customer relationship.

Delighted customer πŸ˜€

  • Perceived performance > Expected performance

Satisfied Customer πŸ˜ƒ

  • Perceived performance = Expected performance

Dissatisfied Customer 😞

  • Perceived performance < Expected performance

Negative impact of having delighted customers

When company adding extra features for the product to delighted their customers, after time being customers think these features as a normal product features.

If company cut down this additional features then their customers become dissatisfied.

  • Exchanges and relationships

Exchange is the act of obtaining a desired object from someone by offering something in return.

  • Markets

The set of all actual and potential buyers of a product or service.

Sellers must serch for buyers, identify their needs, design good market offering, set prices for them, promote, store and deliver them.

Core Marketing Activities

  • Consumer resech
  • Product development
  • Communication
  • Distribution
  • Pricing
  • Service

Marketing manager want to decide plans that will build profitable relationship with target customers.

There are five alternative concepts under which organizations design and carry out their marketing strategies.

  • Production concept

The production concept holds that consumers will favour products that are available and highly affordable.

Management should focus on improving production and distribution efficiency.

The production concept can lead to Marketing myopia.

  • Product concept

This holds that consumers will favour products that offer the most in quality, performance and innovative features.

Marketing strategy focus on making continuous product improvement.

Product quality and improvements are most important parts in most marketing strategies.

  • Selling concept

Many companies follow that concept.

This holds that consumers will not buy enough of the firm’s product untill it undertakes a large scale selling and promotion effort.

  • Marketing Concept

This holds that achieving organizational goals depends on knowing the needa and wants of target markets and delivering the desired satisfaction berter than competitors.

Customer focus and value are the path to sales and profits.

  • Social marketing concept

A companies marketing decisions should consider consumer’s wants, the companies requirements, consumers long run interest and society long run interest.

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Health and Safety Management

A state of complete physical, mental and social wellbeing and not merely the absence of disease or infirmity.

Safety is the protection from the danger of accident.

Physical health – This is a state where physical deaseases do not exist within the employee. This is measurable.

Mental health – this is about psychological wellbeing of an employee. Thos related to human mind and emotions rather than human body.

Health and Safety Management refers to the activities involved in protecting and promoting physical and mental health of the employees so that they can perform jobs efficiently and effectively.

Importance of HSM

  • Help for employee well being.
  • For higher job performance.
  • This help to make correct decisions and endure good expected behaviour.
  • Physical energy speed endurance persistance and flexibility to do correct functions.

Major types of hazards

1. Occupational Accident

Sudden event which causes physical injuries to an employee or more employees working on the employement in an organization.

Types of occupational accident

1. Major accident
Fatial accident – death of the employee with in the working period.
Non fatial accident – because of the accident mployee not death but he become disable.
Permanent – disable for his life period.
Temporary – partial disable
Total disable

2. Minor accident

Cost of occupational accident

Direct cost
compensation given to the injuired employee or family members in case of death.
Medical expenses for recovering the injuired.
Expenditure repairing or replacing tool and equipment damaged due to the accident.
Loss of production of the injuired employee due to accident.

Indirect cost
Time spent by other employees to help the injuired employee.
Time, energy and money needed to record accident and consequences.
cost of time, energy and money on invesigations of accident.

2. Occupational Diseases

An illness taht catches an employee due to the reason of performing their job role.
Because of the job role some deseases are happen to the employee.

Ex: skin deseses
Trauma (maximum level of the stress)
back pain
poisoning

Categories of cause of deseases

  • Chemical causes – by inhaling dust of poison, toxic metals and etc. They may enter the human body and may cause acute desease.
  • Biological causes – Bacteria, Viruses, Fungers may causes aome brain fevers and algies.
  • Physical causes – heat, radiation, lack of proper ventilation may result some causes.
  • Psychological causes – fear, shocks, frustration

3. Law quality of work life

quality of work life mean the degree to which employee expectation are met by the job and the job environment.

Reasons for law quality of work life

  • Poor job design
  • Law employee involvement
  • In effective pay system
  • Lack of job security

4. Organizational stress

This mean pressures that employees feel in their work life.

Stress may lead to that the employee suffer from headache, hi blood preasure, unrest and etc.

Reasons

  • Poor supervision
  • Job dissatisfaction
  • Poor team functioning
  • Lack of privacy

Main Reason to be Happy

Hey, can you be like this… I am also trying to be like this.

How many times you feel grateful for what you have. Do a small work for you.

Take a peace of paper and write what you have alredy and what about your idea regarding that. Normaly you will receive more negatives than positives. If you have more positive counts then you are a happy person. Don’t be demotivate if you have more negative counts. Try to prctice that.

Sometimes I am also worry about things which I cannot achieved. Believe me in my life most of the achievements I loss from a small gap. Sometimes I feel I am not much lucky enough to put into my mouth which i have in my hand.

Also if you are not grateful for what you alredy have, you may kick your oppertunity to feel that. But after it goes sometimes you may worry about that.

So train your mind to see the good in everything. Then you can get ability to speak to the world

” yes, I am grateful”

Management of Incentive

Incentive is a special reward that drives an employee to perform beyond the normal level of performance. Also incentive can identify as something additional than base salary. Basically incentive pay for performance. This link reward cost and organizational performance. Incentive alternatively called as variable pay and contingent pay.

Management of incentives can defined as the process of development, implementation, and maintenance of a fair and adequate system of incentive.

If employee perform in normal level of performance or non performance in normal level both of those receive base salary and wages.

Importance

  • Provide real motivation for the employee.
  • Incentive payments are variable costs link to the achievement of result.
  • Good way to evaluate organization hard work prople1s performance.
  • Help to attract only top performances, when salary budgets are low.
  • Incentive encourage team work and unit cohesiveness. (When payments based on team result)

Types of Incentive Plan

Individual Incentive Plan

Focus on individual job performance. This discourage team work. This may develop β€œhostiled atmosphere” among employees some may be jealous on others. Performance threshold in minimum level of performance to qualified to meet incentive payment.

  • Piece work

– Straight peace work

Employee pay a sum for each unit produce by him.

Ex: organization pay 1$ per 1unit. Normal produce 50 units per 1hour if employee produce 60 units per 1hour. Other extra units also pay as using same peace amount.

– Differencial piece rate

Employee paid piece rate for each of the units upto standard outputs. Higher piece rate for each unit produce over the standard.

Ex: Upto 50 units per 1hour organization pay 1$ per 1 units. Extra units than 50 units per 1hour, each piece paid as 3$.

  • Standard hour plan

Employer pay incentive if employee complete the work in less than standard time. This method use service organizations.

  • Bonuses

One time payment usually per year. This is an additional income for the employee. Common among managerial and incentive employees.

2 ways of paying bonuses

– Certain Parentage of base salary.

– Monthly wise ( give monthly salary as bonus )

  • Merit pay

Paid based on employee individual performance measured through employee performance evaluation system. Usually become a part of employee base pay. This payment add for base salary. After that also calculate EPF and ETF amounts. Merit pay is cumulative.

  • Lum-Sum Merit pay

This not add to the base salary. This is not cumulative. After job performance review, calculate this amount.

Team Incentive Plan

Focus on group job performance and paid collectively. For high performance organization pay high incentive. This motivate employees to engage with team work.

  • Team incentive plan

Organization give time frame for team, if they achieve target within the given time period then they receive incentive.

  • Gain sharing

Advantage which have obtain by effort of employees.

Advantages- Increase cohesiveness

Increase employee motivation

Organization team culture will be develop

Knowledge sharing will happen

Disadvantages – Free-write effect ( some people are gain incentive without performing)

Inter group conflicts happen

Low performance people become demotivate

Complex payout formula difficult to understand for everyone

Organizational Incentive Plan

Focus on entire organizational performance. Incentives are paid organizationally. This reduce competition among employee. Encourage all employees work together to generate better organizational outcomes. Based on hierarchy incentive amount will depend.

  • Profit sharing

Shares profit among all the employees within organization.

  • Stock options

This is the way of achieving employee ownership. This give employees the opportunity to buy a company shares at a previously fixed price.

  • Employee stock ownership

That gives employees certain tax and financial advantages when stock is granted to employees.

Merry Christmas guys!!!

Hope your Christmas is a perfect measure of fun and laughter!!!! πŸŽ„ πŸ˜β›„ ❄

Merry Christmas guys!!!

What are the Strategies for improving Helath & Safety?

Strategies for minimizing Occupational Accident

  • Environment design Have to design work environment in safety manner. In here we should store dangerous equipments and tools in a separate place. Request employees to use safe equipments. Such as helmet, eye guard, boots, gloves and nail guard.
  • Floor cleaning should maintain clean floor. It should not be wet. It is best to follow daily floor cleaning method.
  • Maintenance. Should do reapair and maintain machines frequently. Should follow maintenance plan. Through that can avoid corrective maintenance and accidents to the employees.
  • Continues Inspection. Before and after working, regulatory should check machines to identify whether those machines are working or not. As an example cleaning dust, check oil level and so on.
  • Safety Training and Education. HR division can provide training to prevent from accident. Such as fire training. In here can take machine operators involvement to do machine maintenance work. Because of that they will operate machine more carefully.

Strategies for minimizing Occupational Diseases

  • Medical Examination. can conduct medical test annually, semi annually, quarterly and so on. Participation of every workers are very important.
  • Physical fitness program. Conduct various exercise sessions for workers. Such as jimnasium, yoga classes and etc.
  • Health Education. Through doctors conduct seminars and workshops provide health education for workers.
  • Enclosure keeping such hazard thing keep away from every employees. It is good to use separate place for that.
  • Maintain Sound Physical Working Conditions such as ventilation, lightning, air conditions.

Strategies for minimizing low quality of work life

  • Redesign jobs by considefing both efficiency elements (standardization, specialization) and behavioral elements in order to ensure a proper balance.
  • Apply job enrichment. Give power to plan, do and control the job.
  • Obtain opinion, suggestions and comments from employee before making decisions.

Strategies for minimizing Organizational Stress

  • Ensure job security of the employees.
  • Provide training to reduce stress.
  • Ensure carrer development and give facilities for that. Carrer development is series of job that one person perform with his work period.
  • Give fair and sufficient usages of salaries.

Good Morning…..

Hi guys after long time.

Very Good Morning to all!!

I am also believe my mind as a magnet. Aren’t you?

You know we don’t want to let problems to come to our life. We really want positive things in life. Even we want positive things are always our life full with positive. You and me know it is not like that. However we have to accept that bitter truth.

So what should we do to convert those problems to good things.

Don’t think more about problems. Then your mind will attract more problems. will think about way to solve that problems.

And guys will practice to think about positive thoughts.

At least, this will help to reduce attracting more problems to your life.

Believe me guys it will work on you positive way.

So always remain positive & optimistic….! 😊😍