PROCESSES AND FUNCTIONS OF MARKETING

BACKGROUND: 

The prime purpose of marketing is to design the mechanism to put commodities in the hands of final users. These products are to move from the place of origin to the place of destination. This flow of goods is not a simple task, nor even automatic. Many marketing activities must be performed to attain the said aim which is highly specialised and are called as functions. These functions are performed within the broad frame-work of marketing mechanism which involves three distinct and major processes. These three processes are Concentration, Equalization and Dispersion.  

A. THE PROCESS OF CONCENTRATION: 

          It is the first process of marketing Concentration implies bringing the goods at a single point, to make possible convenient and economical distribution. That is, collection of commodities for the purpose of distribution is called as 'Concentration'. This process is inevitable for consistent and efficient marketing activities. 

Why Concentration? 

The process of concentration assumes all the more greater proportion, because of the following reasons: 

1. Small-Lot Production: Small lot production is the outstanding feature of such products that are marketed in natural form i.e., all the agricultural produce and dairy

products like milk, cheese, butter, eggs, meat etc. Thus, to bring about economy in transport costs, to make possible other marketing services such as grading and standardization, for the benefit of consumers, and to avoid waste of time, all cereals as wheat, jawar, grams, staple products like cotton, tea, jute, etc., are to be concentrated at a point. 

2. Assembly of Parts: Some manufactured products require greater amount of assembly work. Because of specialization, different-spare parts of a product are produced in different corners of the country, or parts of the world. To make finished producers, assembly is quite essential. To make assembly, concentration is unavoidable. For instance, to have a fully designed bicycle, eighty spare-parts are to be assembled; to have an automobile in ready state two thousand and five hundred parts must be assembled. It is so with radio, T.V. set, aero plane, typewriter etc.  

3. To Ensure Continuous and Ready Supply: For the consumers, availability of goods is not the only worry. What is more important is, that such supply must be ready and continuous. This is true essentially in case of foreign trade. Thus, Indian onions were in greater demand, but due to failure of Indian growers to ensure continuous supply, the demand is falling steeply and foreigners are depending on other sources of supply. India, therefore, lost sizeable amount of foreign exchange on this account. This process of 'Concentration' is performed by products, wholesalers and their agents.  

B. THE PROCESS OF DISPERSION: 

                 This is the last aspect of two fold movement of goods. There is no charm and meaning in mere concentration. Concentration takes place because of 'dispersion'. Further the process of 'dispersion' becomes means of distributing the goods which are concentrated for the whole army of consumers. I have touched dispersion process secondly, instead of equalization, for the purpose of better understanding.  

Why Dispersion? 

 Certain reasons elucidate the justification of the dispersion process:  

1. Scattered Buyers: The customers, for a particular commodity, are not located at the points of production or concentration. They are widely scattered along the length and breadth of the nation. For instance, Indian mangoes are world famous and they are to be distributed wherever there is a demand. Toilet soap-cakes and perfume sticks (agarbatti) of India are famous in sophisticated nations of the west and east. They, depend on dispersion process much, to enjoy these products: 

2. Production for Consumption: The production of commodities takes place with an objective, on placing them in the hands of consumers. The aim of production is to find out the customers for such goods and services at a profitable and acceptable price. This also calls for dispersion, as there is no meaning for production in absence of consumption.   This process is managed well by wholesalers, agents and retailers. 

C. THE PROCESS OF EQUALIZATION:  

             Between these two diametrically opposite processes, there is another process, which is more significant. This is the process of 'Equalization'. It is the process by means of which the supply of goods, ready for sale, is adjusted to the demand for them. It implies the reconciliation of supply to demand through storage, and transportation in required quantity and quality. Professor Tousley, Clark and Clark, define this process as "it consists of adjustments of supply to demand on the basis of time, quality and quantity." 

Why Equalisation? 

Following factors fortify the solid ground in favour of equalization:  

1. Seasonal-Production against Continuous Consumption: There are very many commodities that are produced in a particular season, where as, they are consumed throughout the year. All agricultural produces like paddy, wheat, cotton, jawar, tobacco, fruits and vegetables do come under this category. This seasonal supply is to be matched with continuous demand and it is the aim of equalization. 

2. Continuous Production against Seasonal Consumption: Similarly there are goods which are having seasonal demand, .where as production is round the clock. For instance, water proof-materials like rain-coats, hats, plastic articles, covers, shoes, umbrellas, and again winter products like sweaters, muflers, jerseys, pullovers, woollen socks, gloves etc., are produced throughout the year but are demanded in the respective seasons. Thus, continuous supply is to be adjusted to the seasonal demand through the warehouses. 

3. Quality Needs Differ: Individual requirements, in terms of quality, differ widely i.e., tastes, fashions, habits, likes and dislikes differ from person to person. For instance, take buying of a radio-set and a ready-made dress; different people prefer different products of similar type like Murpy, Philips, Nelco, Bush, Amzel etc. If one likes a maxi another likes bell bottom pant and Kurta set, still another likes Judo wear etc. Such variety requirements are to be met fully, to survive and succeed. 

4. Quantity Needs Differ: As the individual names differs. Thus quantity needed also differs. Thus, the cloth that an individual requires for a shirt or maxi, depends on the structure and dimension of body, individual styles, pattern of tailoring etc. Further the quota of food that is taken by an individual differs widely. For instance, the amount of tea powder consumed by a family depends on the drinking capacity, the size of the family, income-frequency of guests visiting the house etc. These factors make the quantity demanded to differ from family to family. Here, such variations in quantities are to be adjusted.  

                        The process of equalization is shouldered by middlemen may be agent or merchant. The process of equalization starts when concentration ends and ends when dispersion starts. 

                 To conclude, these processes of marketing are the soul of marketing mechanism.Each process is not independent but mutually interdependent. The above explanation has proved amply that these processes are essential ingredients of marketing efforts.   

FUNCTIONS OF MARKETING 

Marketing involves certain activities to make the goods move from producers to consumers. Tousley, Clark and Clark have defined a marketing function as "a major specialized activity performed in marketing". Marketing consists of operations and an operation may be performed several times either by a producer or by a middleman, till the commodity finally  reaches in the hands of consumers. It is an act, operation of service, by which the original producer and final consumers are linked together. Many marketing professors and experts like I.F. Pyle, Converse Huegy, Mitchell, Duddy and Revezon, Clark and Clark and others have given their own classifications. These writers have listed from five to as many as hundred and fifty functions. But here, we follow the standard and the renowned classification given by Professors Tousley, Clark and Clark. 

Marketing Functions Classified: 

                 The designed tree explains easily and clearly the various functions of marketing on next page: 

A. FUNCTIONS OF EXCHANGE:  

           Exchange implies the transfer of goods and services for money or money's worth. Exchange brings about change in the ownership of goods. It is a two way process involving two separate but supporting activities viz., buying and selling. They are complementary to one another but not contradictory.

1. Selling: Goods are made for profitable sale. Selling is the sum total of all those activities that push the commodities to the buyers or consumers at a profitable price. It is the process that involves personal and impersonal efforts made in persuading the prospective customers to buy a commodity or service. It is concerned with the activities that convert the desire into demand. Rather creation of demand, its maintenance and expansion, is the soul of sales efforts. This function of selling embraces elements which together make a sound selling function. 

    (i) Product-Planning and Development: A satisfactory product is the starting point of effective marketing- efforts. Product-planning is planning or forecasting what consumers want in terms of quantity, quality, time, place, price etc., whereas, product-development refers to making available such goods to meet the requirements of consumers as demanded by them. 

     (ii) Contactual Function: It is the set of those activities that pertains to finding out and locating the consumers and establishing and maintaining relation with them.  

     (iii) Demand Creation: It includes such special efforts to induce and persuade the prospective users to purchase the products of the seller only. These efforts may be personal i.e., salesmanship and, or impersonal i.e., advertising and other devices of sales-promotion. 

   (iv) Negotiation: Negotiations as to terms of quality, quantity, price of the product, time and mode of transport, payment etc., are to be made with the prospective buyers. 

      (v) Contractual: Once the terms and conditions are settled between buyers and sellers, a final contract would be entered into, where legally, ownership of goods passes on from seller to the buyer. 

2. Buying:  Buying is another function of exchange that refers to all such activities involved in the assembling of goods, under a single ownership and control. Buying implies "business" rather than buying for consumption, as is the case with the consumers. Its immediate purpose is to bring commodities together where they are wanted, for use in production or for final consumption. This buying function has following five 

elements : 

(i) Planning Assortments: Business buyers are to study their own market conditions, in order to know the type, quantity and quality of goods that are required by final users. Depending on this decision, actual stocking of goods starts. So, selection of various consumer-oriented goods is the base. 

(ii) Contactual: It is clothed with the selection of various sources of supply, keeping in touch with them, to get the goods quickly, reasonably, sufficiently and regularly. 

(iii) Assembly: The modern methods of production and distribution have made this element, all the more important. The commodities produced at different places, in different seasons, in various lots, are to be brought together such agglomerative activities can be called as assembly. 

(iv) Negotiation: Buyers and sellers negotiate the terms and conditions of price, quantity, quality, mode and time of delivery, transport, payment etc. 

(v) Contractual: It is the last phase that binds the parties of exchange, by means of a contract where the titles to the goods, move from sellers to business buyers.  

B. FUNCTIONS OF PHYSICAL SUPPLY:

 These are the functions that are related with creation of place and time utilities. It is said, earlier, that marketing involves physical involvement i and the physical involvement is the actual movement of products that is attained by means of transportation and warehousing facilities.  

1. Transportation: 

Transportation is the physical means, to move the goods and people from a place to another. Transportation is an essential spoke in the wheel of marketing. The goods are moved from a place where they are not required, to the place where they are demanded. It is responsible for the creation of place utility. The network of transport can be compared to the 'nerve system' of a body, through which blood flows easily and quickly and keeps the body working as an eternal force and ,entity. Goods are sent to the market in number of ways like railways, road ways, air ways and water ways. The speed and cost determine the selection of a particular type of transportation. Transportation is a necessary function of marketing, as markets are geographically away from production centres. 

2. Storage: 

Storage, is equally important, that, it creates time utility. The products are to be preserved from the time of production to the time of consumption, as they cannot be sold immediately. To keep, in fact, the quality of the products, special arrangements' are made for holding the goods. This being done by storage and warehousing system. It does help in postponing the consumption to futurity. As goods are produced well in anticipation of demand, storage and warehousing functions occupy a place of 'free wheel'. Storage is the base of consumers to get the goods as and when they need ispeculater's can take advantage of anticipated price fluctuations; prices can be equalized over a period of time; quality of products can be equalized over a period of time; quality of products can be improved by seasoning. 

C. FACILITATING FUNCTIONS: 

In addition to the above four functions of exchange and physical supply, there are still four functions that facilitate the process of exchange. They are' financing, risk-bearing, matket information and standardization. These can be called as auxiliary funlictions as they lubricate the machinery of marketing.  

1. Financing: 

Finance is the base for all marketing activities. It smoothens the process of exchange and acts as  a lubricating oil to the wheel of marketing: Modern marketing requires vast financial resources in the form of fixed and circulating assets like land, building, furniture and fixtures, show-rooms, materials, labour and stock of goods. Again, the gap created by credit transactions is to be plugged. This process of 

providing funds for marketing activities, is known as 'financing'. Long term capital is. made available by issue of debentures and shares. Financing has two clear sides, finance getting and financing the process of marketing. Finance getting includes credit too. A marketing organisation gets credit from banks and other trading concerns to tide over seasonal difficulties. It extends its scope of granting credit to customers and middlemen. Of late, 'consumer credit' is playing a significant part in promoting the Sales. 

2. Risk-Bearing: 

Market risks are inherent, so long as the process of exchange continues. Many risks are involved in marketing which bring about changes in ownership, place etc. Risk is a danger of loss, arising out of unforseen circumstances in the future i loss is caused by such events as fire, flood, tornado, theft, mismanagement, physical deterioration caused by changes in fashions, -prices etc. It is human tendency to apply his intelligence or skill to reduce the possible losses, in different ways. These risks are to be shouldered, shifted or reduced. In absence of such risk-bearing function, exchange would not have been possible and profitable on' such a grand scale that we witness today. Commodity exchanges, insurance companies are the specialized institutions that extended their helping hand in shifting the risks at a reasonable cost. 

3. Market Information: 

The much desired success of marketing depends, on correct and timely decisions. These decisions are based on market information or market intelligence. Market information includes all facts, estimates, opinions, views, regarding the market weather. This function is having three aspects viz., collection, interpretation and dissemination. This information relates, to what products are to be stocked? which is in demand? what sellers plan to sell and in what quantity? of what quality people what to buy? their tastes, habits, fashions, income, population, preferences, motives etc. This information collected must be adequate, timely and accurate, as the work of a marketing executive is to orient his efforts, efforts of his dealers towards marketing the products. Hence, one should have up-to-date information, about customers,dealers and internal operations to achieve ultimate goal.

4. Standardization:  

It is the last function that helps to tackle certain major problems of marketing. It is related with the division of commodities into distinct groups, each having common characteristics. This function involves four steps viz., fixing the standards, grading, inspecting, and labelling. A 'standard' is a 'norm' 'grade' a 'category'. Such standards are fixed, basing on physical characteristics of products like size, shape, colour, taste, chemical content, sweetness, ripeness etc. Thus, standard is a specification. The act of grading is called as standardization. After grading or sorting the products, inspection is done and lastly labels are fixed, as a matter of reference and proof. Standardization assuming is more and. more significant, as the standardized products are easily bought and sold. In fact, grading starts where standardizing ends. Standardizing and grading are important to efficient marketing. Every function of marketing is deeply and favourably affected. Many ticldish problems are solved, as it encourages, grades, futures trading, reduces costs of physical supply, makes possible- easily, and substantial finance at lesser cost. 

       To give the whole picture, in a nutshell, buying and selling constitute the two primary functions of marketing. The remaining functions are in sense, facilitative. Transportation and storage have to d~ with physical factor i they add place and time utility. Standardization involves establishment of certain criteria to which the goods must confirm. Financing and risk- bearing play an important role in the scheme of marketing. Finally, marketing information serves as a guide for determining what the trader will pay, and what will be the costs of receiving .and distributing the goods. 

MARKETING TASKS

Marketing has not remaind only a process of moving the goods and services from renders to consumers or reunners. Three major changes have taken place as compared to t] and the current 21st century or new millennium. These are globalization, technological and dregulation. It is certain that global forces will increasingly continue to affect every one‟s personal life. As a result, manufacturing will move to more economically" favourable locations all over the world or protectionist measures will stop these moves but raise the cost for every one secondly the technology continues to advance as much faster pase and is bound to amaze all of us of late we stared with cloning of sheep jolly only a beginning of the bionenetic revolution The Human  promises to usher in new medical cures. The Digital Revolution is releasing smart chips life smarter in all walks - new types of non conventional homes, cars, clothes and what not. us we are to fly in space ships instead of airbuses thirdly there is continuous push toward de regularization of the economic sector that is more people in more countries are convinced that markets will work under relatively free conditions where consumers can decode what to make? When to make? How much to make and what to sell? It implies that competitive economies are sure to produce more wealth than highly tegulated or planned economies to unlash the benefits of competition many countries are privatizing public sector companies and corporations. s  at  the dawn of a time when intelligent robots will do more and better of our work for all of us. We are the. Of  fly in space-ships instead of airbuses. Thirdly, there is continuous push toward deregularizations the economic sector. That is more people in more countries, are 

convinced that 'markets w~ relatively free conditions where consumers can decide what where and when to buy and the  companies  producing these goods and services arc free to decide what to make? How much make and what to sell? It implies that competitive economies are sure to produce more wealth than   highly regulated or planned economies. To unlash the benefits of competition many countries are  privatising public sector companies and corporations. These three basic changes or developments namely, globalisation, technological superiority  deregularisation  are bringing in their trail countless golden opportunities for all of us. As rig] by Professor Philip Kotler - Mr. John Garner "Behind every problem there is a brilliantly opportunity."  

Then what is the task or tasks of marketing under this dynamic wonderful world. As noted earlier marketing deals with identifying and meeting the human and social needs. Perhaps the shortest and sweetest definition of marketing can be "meeting needs profitably." People want pollution smokeless cigarettes, sugar without sugar, diet beer, vegetarian meat anti-aging medicines and tonics to defy the sings of oldage, condenced yet balanced food, sleek and unbreakable folding Moon permanently, having houses on the deep sea bed and so. All these expectations are drive to turn a private or social needs into business opportunities. They are to be more customer Many of the daring and progressive companies have gone non-conventional in their approach, spending lot on expensive marketing research, spending huge sums on mass advertising and 01 operating large marketing departments, these companies stretched their limited resources, ] to their customers, and created more satisfying solutions to their needs. They formed buyers ( creative public relation and focussed on delivering high product quality and winning long-term loyalty. This is what is quoted by Professors Sam Hill and Glenn Rifkin in their latest book F MARKETING published by Harper Business in 1999. 

SCOPE OF MARKETING 

   Marketing itself is the greatest task of creating, promoting and delivering goods and services to final consumers and business buyers. In fact marketing people are involved in marketing of ten types of entities namely, goods, services, experiences, events, persons, places, properties, organisations, information and ideas. Let us note these in brief, which will help us in knowing the real gamut of tasks of marketing.

1. Goods:

    Goods- tangible - constitute the bulk of a country's production and marketing effort. Advanced country namely America produces and markets 80 million eggs, 03 billion chickens, 5 million hair-dryers, 200 million tons of steel, 4 billion tons of cotton 2 billion tons of ground nuts, 1.5 billion maize. As against this country like India - a developing one, produces 25 billion eggs, 0.25 billion chicken, 90 million tons of steel, 1 billion tons of cotton 0.75 billion tons of ground nuts 0.25 billion maize-to take a few cases. The major items of goods in case of developing nations are those relate to basic necessities such as food, shelter, clothing and other basic commodities while the luxury items of high-class society needs are the needs of developed countries. 

2. Services: 

       With the advancement of the economies the growing proportions of their economic activities are, More based towards services. The ratio of service to good ranges between 65 to 35 to 70 to 30 percentages to the total. In growing economies it is growing at lower pace. and the ratio ranges between 25:75 and 35:65 percentage. These services can be broadly classed as economic and' non-economic, personal and group financial and non- financial. They in a variety of services of unskilled to highly professional‟s services. A market offering consists of service and product mix in wider and varying range. 

3. Experiences: 

       One can create, stage and market experiences by orchestrating. U.S.A's Wall' Disney World's Magic Kingdom is a unique experience climbing of Mount Everest, visiting a fairy kingdom, a pirate ship or a haunted house, hiking, trekking ESSELL world, Water Kingdom, Spending a week at base ball camp or spending a fortnight in meditation centres and so on. 

4, Events: 

          Creative marketers promote time based events such as olympics, trade shows, sport events, company anniverseries, artistic performances; holding fashion shows; all these need good planning by professionals to see that events are a grand success. Musical concerts, congregation of member and non-member on international scale such as Japan Life. 

5. Persons: 

       Celebrity marketing has become a major growing business. In the past a person seeking name and fame or image used to hire a press to write and publish stories in newspapers and magzines. Today each professional  has an agent or a personal secretary be it a lawyer, doctor, actor or actress, financiel's, CEOS, mucisian, magicians, In world of American art world, Andy Warhol has applied entrepreneurial marketing principles to build his own fame, Indian case, Amitab Bachchan made a cam back in a big, way through K.B.C-his classes on every Sunday at 10.00 A.M.through KBCJ. Mr. Tom Peter a great management consultant is the master of selfbranding and asked each person to build a brand of his own. 

6. Places: 

         Places-may be cities, states, regions and even the whole country are competing in attracting tourists, industrialists, employees, professionals, investors, factories, head officers, new residents. The world-class examples. can be Stratford in Canada was barely run down city with only one asset namely its name and a river called Avon. This was transformed into a place of annual Shakespeare, Festival tab made Stratford a tourist spot of Canada. Ireland is a place marketer has attracted more than 500 companies to locate their plants, operating Irish Development ~oared, the Irish tourist Board, the Irish Export Board, attracting foreign investment, tourists, professionals and importers. Place marketers include economic development specialists, real-estate agents, commercial banks, local business associations and public relations agencies. 

7. Properties: 

                 Properties represent intangible rights of ownership of either real property-real estate or financial property-stocks and bonds. These properties are bought and sold which warrant a marketing effort. It is our common experience that real estate agents work for sellers and buyers linking them, stockers bring to get her buyers and sellers of stocks and bonds. These intermediaries may be individuals institutions. or institutions' 

8. Organisations:  

                  Organisations like individuals work hard to build their image or personality in the minds  publics - through public relations techniques. Institutional ads by companies speak of this Philips company - the Dutch electronic company - uses the words "Let's Make Things Better" Coca Cola Co~, has a slogan" Things go Better with Coca Cola "BPL says "Believe in Best." Pepsi Cola company says "Want More." Sony corporation says only "It is a sony"., Even universities Even durational lnstitum Museums, Performing Art Units have their plans to boost their, image to compete for more slack b participants audiences visitors on one side and funds on the other .

9. Information: 

             Information is a valuable product which can be produced and sold. Schools, colleges and universities and other institutions of learning produce and distribute at a price the product to students, parents the communities. 'Encyclopedias and non- fiction publications are rich source of information. Petiole and journals provide highly specialised and updated information Travel guides with condenced and dhal road, rail routes are of considerable help to tourists. We buy CDs and engage in internet surfingto,i: most sought information. Practically on each subject, aspect we have detailed information. 

10. Ideas: 

          " Each market offering has a basic idea that forms its core or heart. The president of Japan~ ~ says, "We manufacture beds ranging Rs. 80,000 to 1,25,000 but sell health." Mr. CharIey Reveson famous Revelon-Cosmetics Company observed." In the factory, we make cosmetics~ in the. sequel !.e" "open:" \n ~sly sense "dyer to a drum "IS 'buying a h01ej purchaser of a spectacles an eye sight. To is, products and services are the flatworms for delivering the ideas or benefits. Marketers search Cl and hard for the core need they are trying to satisfy. In that sense, a temple priest or seminary church is to decide whether' temple or church is sold as a worshipping place or a community center, Therefore, the design of a temple or church will differ as warranted by the goal. 

MARKETING TASKS RESTATED 

All the marketing tasks can be brought in one focus for better understanding. To understand I marketing tasks one should answer the question what marketing really does? The answers to this question  are the tasks of marketing. These are: 

1. Understanding Customer Needs: . Understanding customer needs and wants is not always simple. Many a times a company succeeds , in defining company's target market but fails to understand the customers' needs correctly. There fore, the marketer should try to understand the target markets needs, wants and demands 'Needs' describe: basic human requirements. Say, people need food, air, water, clothing and shelter to survive. People do have strong needs for recreation, education and entertainment. The 'needs' become 'wants' 1 they are directed to specific objects that satisfy the needs. An American needs food but wants a hamburger or hot dog, French fries and a soft drink. An Indian needs food but wants riot or chapati, rice, rece beans, garlic and onions. Americans, French, Indians need fruits, but American wants bananas, ad French sweet lemon and apple, Indian, bananas mangoes and apples. Wants are shaped by ones so On the other 'demands' are wants for specific products backed by an ability to pay. That way who ~ not want Mercedes Car? However, only a few will be able to pay and buy. The marketing companies must measure not only how many people want but how many are able and hi1ling to buy. In this cotext this distinction throws light on the criticism that marketers create needs or marketers get.. People to' things they do not want. It should be made dear teat marketers do not create needs because null preexist. What they do is they influence the wants along with other societal influences going back to case of buying an automobile - particularly Mercedes, marketers promote the idea that owning of Mere satisfies the need for social status. . That is, the marketers can not create the needs or need for Mercedes   Defining Customer Value and Satisfaction: Management consultant and Management 'Guru' rightly said during 1960's the company's task "to create the customers." It is true. However, customers of2001 are at sea to choose what they want exactly because he has a vast variety of products, brand choices prices and suppliers t09. Rationality of a customer guides him in estimating that market offer that will deliver the highest value customers with the hard earned money are the value- maxi misers within the frame-work of search costs and limited knowledge, mobility and income. They want to get real value for their money. That is, they form an expectation of value and act upon it. Whether or not the offer lives up t6 the value expectations influences both satisfaction and repurchases probability.  A given product or offering will be successful if it delivers value and satisfaction to the target buyer. Naturally, a buyer chooses between different offerings on the basis of which is perceived to deliver the most value. Value is the ratio between what the customer gets and what he gives. The customer gets benefits and, therefore, assumes costs. The costs comprise of monetary, time, energy and psychic costs. The equation value can be.                                                    

                                Benefits    Functional benefits + 

 =         value  = Costs       Monetary Costs + Time Costs + 

   Emotional benefits  

Energy Costs + Psychic Costs '

 A wise marketer can increase the value to the customer by increasing the benefits, reducing costs, increasing benefits and reducing costs, increasing the benefits by less than reduction in costs. As customer ~ to buy from the firm that he perceives the highest customer delivered value. "Customer delivered value" is the difference between total customer value and total customer cost." Total customer value" is the 

bundle of benefits that customers expect from given  product or service." Total customer cost" is the bundle of costs that customers expect to incur in evaluating, obtaining and disposing of the product or service. The concept of customer Delivered value can be presented as follows in the figure: 

                                      Customer delivered value 

 Total customer value                                       total customer cost  Product value                                                   monetary cost  Services value                                                  time cost  Petsonneal vaule                                              energy cost Image value                                                                                psychic cost 

 Some academicians an marketing experts do not believe in this frame-work of consumer delivered value. According to them this frame- work is too rational. Practically, buyers operate under various constraints and occasionally make choices that give         more weight age to their personal benefit than company's benefit. However, delivered-value maximisation is a useful frame-work that applies to good many situations and paves the way for very rich insights. The implications of DVM are:  (1) The seller must assess the total customer value and total' customer cost associated with each of his competitor's offer to know whether his own offer rates the buyer's mind. (2) The seller who is at a delivered value disadvantage has two alternatives. The seller can try to increase the total customer value or to decrease total customer cost. The alternative calls for strengthening or augmenting the offer's product, services, personnel and image benefits. The second alternative calls for reducing buyers costs by reducing the delivery process, or absorbing some buyer risks by offering a warranty. 

                        Let as now turn to customer satisfaction - the other face. Whether the buyer is satisfied after purchase depends on the offer's performance in relation to the buyer's expectations, in general. "Satisfaction" is a person's feelings of pleasure or displeasure resulting from comparing a products perceived performance or the outcome in relation to his or her expectations. . Stated alternatively, satisfaction is the function of perceived performance and expectations. In case, the performance falls short of expectations, the consumer is dis-satisfied. Conversely, if the performance matches the expectations, the customer is satisfied. However, if the performance exceeds expectations, the consumerism highly satisfied or delighted.  

    Many companies, therefore, aiming at high level satisfaction because customers who  are still go in search of better offer to get delightment than mere satisfaction. This search leads to switching off from one seller to another. However, those who are delighted are less prone to switch over to others. That is high satisfaction or delight creates an emotional bond with the brand and not just a rational preference which results in high customer loyalty. The question is : how do buyers form their expectations? Experience of the past, friends and associates advice and the marketer's and competitors information and promises. The marketers should neither raise nor lower their consumer expectation because in both the cases they lose customers. There is nothing wrong in raising consumer expectations backed up by matching performance. These are the companies aiming at TCS - Total Customer Satisfaction. The Xerox company guarantees "total satisfaction" and replaces at its expense any dis-satisfied customer's equipment within a period of three years after purchase. Another famous company namely, Cigna advertises as "We'll never be 100% satisfied until you are too" Honda of Japan advertises "One reason our customers are so satisfied is that we aren't." Another Japanese automobile Company Nissan invites potential in finite buyers to drop in for a "guest drive" and not "test-drive" because the Japane-se word for customer is "honoured guest." The key to generating a high customer loyalty is to deliver a high customer value. In addition to tracking customer value expectation and satisfaction, the companies are expected to monitor their competitors performance in these areas. X company was really pleased to learn that 80 percent of its customers are satisfied. The CEO traced his competitor position and found it to be 90 percent and he was dismayed when the same competitor is aiming at 95 percent consumers' satisfaction. Those companies which are customer centered, customer satisfaction is both a goal and tool. The major tools for tracking and measuring customer satisfaction are : (1) Complaint and suggestion systems (2) Customer satisfaction surveys (3) Ghost shopping or Hiring Mystery shoppers and (4) Lost customer analysis. 

3. To Achieve High-performance Business: 

   

        Each company performance to mach the consumer satisfaction level or consumer expectations. However, what is important is each customer centered company should achieve zenith point of high performance business. The renowned consulting firm of Mr. Arther D. Little concieved a model of the characteristics of a high performance business. This model is presented here as under: 

                       The model clearly demonstrates the keys to success of high performance business namely, stake holders, processes, resources and organisation. It will not be out of place if a brief reference is made to each characteristic. 

                                Coming to STAKE HOLDERS, the business house has to clearly define its stake-holders and their needs. these stake holders are-customers, Fig. 1.6. MODEL OF HIGH PERFORMANCE BUSINESS CHARACTERISTICS shareholders. Each business must work hard to' satisfy the bare minimum or threshold expectations of each stake- holder group. At the same time, the company must aim at delivering satisfaction levels above the minimum for different stake holders. For instance, a company might aim at delighting its customers, perform well for its employees and deliver a threshold level of satisfaction to the suppliers. In setting these levels, the company must be careful not to violate the various stakeholder groups sense of fairness about the relative treatment that they are getting. Wonderfully enough, there is dynamic relationship connecting the stake-holder groups. A hardworking and smart company creates a high level of employee satisfaction that leads to higher and better effort, which leads to higher _ quality products and services which is bound to create higher customer satisfaction which leads to more repeat business leading in turn to higher growth and profits further, leading to high stock-holders satisfaction. It does not stop at that; it leads to more investment and so on. This is the "virtuous circle" that spells profits and growth where all the stake holders are not only satisfied but more than satisfied. 

                            Turning our attention to PROCESSES, a company can attain its satisfaction goals by managing and linking work processes. High performance companies, instead of carrying on the work by departmebtalisation increasingly focussing on the need to manage core business processes such as new-product developments, customer attraction and retention and other fulfillments. They are reengineering the work flows and building cross-functional teams accountable for each process. For instance, at X company a customer operations group links sales, shipping, installation, service and billing so that these activities flow frictionless into one another. Therefore, winning companies will be those that achieve excellent capabilities in managing the core business processes through cross-functioning teams. In their article "Commercializing Technology: What the Best companies Do" by T. Michael Neveus, G.L. Summe and Bra Utah in Harvard Business Review-May-June1990-P 162 pointed out" High performing companies emphasize a set of skills notably different from their less successful counter parts. They value cross-functional skills, while other companies pride themselves on their functional strength. High-performers boast, "We have got the best project managers in the world" Low performers say, "We have got the best circuit designers." Not only companies like AT & T, Polaroid and Motorola but non profit and government organizations have reorganized their workers into cross- functional teams. 

          Focussing on RESOURCES, each company needs resources-labour force, materials, machines, information energy and the like to carryon the processes. Resources can be owned or rented. In the past, the companies owned the resources and controlled them that are imperative for their line of activity or activities. This past practice of owning is fast changing. It is experienced that companies are finding that some resources under their control are not performing as well as those that they could obtain from outside the company. That is why, many companies have now decided to outsource less critical resources if they can be got of better quality and at lower cost from outside the organisation. These outsourced resources comprise of cleaning services, lawn-care, auto-fleet management and the like. For instance, world leader Kodak company handed over the task of management of its data-processing department to IBM another giant in computers. The point lies in owning and nurturing core resources and competences that make up the very essence of business. For instance, Nike company does not manufacture its own shoes because there are certain Asian manufacturers who are more competent in this task. Even in case of India Bata company encourages others to produce specifying the standards and sells those under various brands of Bata. It is Nike, Adidas, Bata, Puma, where name matters. However, these companies nurture their superiority in shoe-designing and shoe merchandising the two core competencies. In such cases competitive advantages comes to the companies that possess capabilities. Whereas core competences tend to refer to areas of special technical and production expertise, capabilities tend to describe excellence in broader business purposes. Professor George Pay says aptly that market-driven forms are excelling in three distinctive capabilities namely, market sensing, customer linking and channel bonding in his article 'The capabilities of Market-driven Organisations" _ Journal of Marketing, October, 1994 page 38. Last but not the least, one is to turn to organisation and its cnlture. A company's organisation is madeup of its structure policies and corporate culture which are likely to be badly affected in a rapidly changing business environment. Though the company's structure and policies can be changed with certain amount of opposition and difficulty, it is very difficult to change the organisational culture. Though it is a hard task, bringing change in corporate culture holds key to implement new strategies with great success. Then what is "corporate culture" ? This phrase is really difficult to express in concrete terms,' as it is an dosed_ concept. Some persons have defined it as "the' shared experiences, stories, beliefs and norms that characterize organisations. Whenever, we enter any company the rust thing strike to our minds of. 

corporate culture-the way people are dressed, how they talk to one another, the way they greet the people checking in and checking out. Corporate culture develops organically and it is transmitted directly from CEO's personality and habits to the last employee at floor level. There can not be better example dtan that of Billionaires Bill Gates the founder of Microsoft company. To-day a 14 billion US dollar \\Jnipany has not lost its hard driving culture perpetuated by him - to start with - as a small entrepreneur. Microsoft's ultra-competitive culture is the biggest key to its thundering success an to its much criticized dommance in the computer industry. ,very often question arises as to what factors account for the astonishing success of long lasting high performance companies? The research study could answer this. The researchers grouped such companies into two categories as "Visionary" and "Comparison". According to them "Visionary" :"companies  are those that are most admired industry leaders, they set their ambitious goals, communicate them to their employees and embrace a high purpose beyond making money. They out-performed comparison  companies. In American industrial world, such visionary companies have been General Electrical, Hewlett Packard and Boing aginst the Comparision companies such as Westing .houses Texas Instruments and Mc Donnell Douglas. The distinctive features of these visionary companies are: (1) Each holds a distinctive set of values from which they do not deviate (2) Each company expresses purpose in enlightened terms and (3) Each company developed a vision of its own for future and acts to implement it    It is evident from the above that successful companies are to adopt a new view of crafting their strategies. The traditional view is that it‟s the senior management hammer out the strategy and hands it down the levels of organization However, modern view says that senior management should identify and   encourage fresh ideas from three groups who tend to be under-represented in strategy making employee.  With youthful perspectives employees who are far removed from company head Company the youthful perspectives employees who are far removed from company head-quarters and employees who are new to the industry because each group is capable of challenging company orthodoxy and stimulating new ideas.  

Delivering Customer Value and Satisfaction: 

         The next thing is that what factors are involved in delivering the customer value. and satisfaction .these two phrases have been understood both in meaning and importance. These instruments or arrangements are "value chain" and "value delivery system." Value chain according Professor Michael porter of Harvard University is the tool for identifying the ways to create more customer value. In a sense every organisation is a collection of activities that are performed to design, produce, market, deliver and support its product. That is, the value chain identifies nine strategically relevant activities that create value and cost in a specific business. These nine valuecreating activities consist of five primary and four support  activities The following figure as given by Philip Kotler clears the concept of value' chain. The PRIMARY ACTIVITIES .signify the sequence of bringing materials into the business-in bound logistics - converting them into final products - operations - shipping out final products.,- out bound ,logistics - marketing them-marketing and sales - and servicing them-service. The SUPPORT: CTIVITIES are - procurement, technology development, human resource management and the firms infrastructure - handled in certain specialised departments, but not only there. For instance, other :parchments may do some procurement and hiring of people. The firm's infrastructure   covers the costs of general management, planning, finance, accounting, legal and government affairs that are borne by all primary and support activities.  Source: Original from M.E. Porter's book "Competitive Advantage- Creating and Stimulating. Superior performance" -1985s 

 Here, the firm's task is evaluate its costs and performance in each value-creating activity and to seek the ways to improve it the firm is expected to estimate its competitors costs and performances as bench-marks and compare its own costs and performances to the extent the firm excels its competitors, it has competitive.  

In fact, the firm's success depends not only how well each department performs its share of work but also on how well the various departmental activities are coordinated. It is commonly found that each department thinks of its achievements and interests side-tracking company's and customers, interest. It should not happen. This problem of ordination can be  better solved by the smooth management of CORE BUSINESS OCESSES. The core business processes include (a) New product realization management (c) Customer acquisition and retention (d) Order to  remittance  (e) Customer service. It has led to re-engineering of businesses, creating cross-disciplinary s to manage core processes. Another part is that of value-Delivery Network. Success comes to those firms which look for competitive advantages beyond their own operations of the value chains of their suppliers, distributors and customers. For thundering success many firms have entered into partnership or joint ventures with .specific suppliers and distributors to create a superior delivery network which is also called as supply chain. This concept of supply chain can be presented as under.. This supply chain or delivery network demonstrates that there is competition between networks and not companies. Here, the company wins with better network It is evident from the above figure that production and sale of ready-made clothes say jean pants and blazers, either one company under takes all which call as vertical integration or join the hands of other who together make a quality product at least cost and in adequate quantity where everyone is happy from producer to customer. To make a jean pant and blazer, the company needs, fabric, the fabric needs standard yearn; to market jean pants and blazers there is need for a retailer to meet the needs of a consumer. Here the, companies are not completing but there is competition between networks. FIG…. 

5. Attracting and Retaining Customers: 

Good many companies are not stopping at the value chain and  supply chain management, they are keen on developing stronger bonds of relationships and loyalty 

with their final customers. In the past, the manufacturers and marketers took consumers for granted. The reasons for this might have been the customers might not have had many alternative sources of supply or all suppliers were more or less equally deficient in service or the market was so fast growing that the companies did not worry about satisfying their customers. Now the things have changed. Today's customers have many alternative suppliers, they are smatter, more price conscious, more demanding less forgiving, approached by more competitors with equal or better offers. It is really harder to please them. As put very rightly by Mr. Jeffrey Gatemen, the challenge is not to produce satisfied customers, several competitors can do it. The challenge is to produce loyal customers. 

How to Attract the Customers? 

The companies expecting growing profits and sales have' spent and are spending good deal of their treasure, time and talents in searching new customers. Customer acquisition demands substantial skill in lead generation, lead qualification and account conversion. To generate leads, the companies develop advertisements and places them on suitable and viable media that will reach new prospects; they might send direct mail and have phone can~ to the possible new prospects, their sales- persons participate in trade-shows where they might find a few leads. All these activities help in producing a good list of suspects. The next task is to qualify which of the suspects are really, good prospects which done by interviewing them, checking their financial standing. Then, these prospects may be graded as hot, warm and cool. The sales people contact first the hot prospects and work on account conversion that involves making presentations, answering objections and negotiating final terms. 

HOW TO RETAIN CUSTOMERS ? 

 The point lies in not only getting new customers but to keep the turnover of customers at lowest point. That is the existing customers should be kept. Unfortunately most of companies gain new customers to lose old customers. It is called as "high customer 

churn." It is an abortive attempt of filling leaking tank with water continuously. -That is companies of today must pay their attention to defection rate of customers. The rate of defection depends on nature of business, among other things. The defection rate can be reduced to the minimum by (1) defining and measuring its retention rate (2) distinguishing the causes of customer attention and identify those that can be managed better (3) estimating the loss of profit caused by loss of customer (4) estimating as to how it costs to retain the customer. The need for retaining the customers can not be over estimated. Right from the beginning most of fut. companies have been working on one side namely, getting the new customers increasingly, bothering little about those who are already there and are likely to move out. Of late companies have realised the importance and giving more weightage on customer loyalty' and retention. It is because they know exactly how much the improved retention of customers is really worth to them in rupees value. Companies have developed modem to calculate the amount repurchase can retain the profit share existing and increases it. The companies of tea day who care for customer retention say seriously "Our company's aim goes beyond satisfying the customer. Our aim is to delight the customers." Therefore, the key to customer retention is 

CUSTOMER SATISFACTION. 

           A highly satisfied or delighted customer: (a) stays loyal longer (b) ,buys more as the company introduces new products and up-grades the existing products (c) talks favorably about company an~ its products (d) pays less attention to competing brands and ads and is less sensitive to price (e) offers' product or service ideas to the company as an experienced expert if) costs less to serve than new customers because transactions are routinised. In view of its importance, the marketing companies should constantly measure their level satisfaction. A company can phone individual customers as to whether they are satisfied or dis-satisfied if satisfied to what extent. It is estimated that a company may lose 80 percent of the "very dis-satisfied' customers, about 40 percent of the "dissatisfied" customers, about 30 percent of "indifferent" customer and say 10 

percent of the "~satisfied" customers and 1 or 2 percent of very satisfied customer-s. It imply~ that the companies should try to exceed the consumer expectation than only attempting to meet them. As loyal customers account for a substantial amount of company's profits, companies should not run the risk of losing a customer by ignoring a grievance or quarrelling over small amount. Agile and customer minded customers ask their salesmen to give full report on each lost customer and all the steps to be taken to restore satisfaction. Intelligence lies in winning back a lost customer as it costs less than attracting a new customer. Consumer satisfaction or delight is the key to consumer retention, hence every thing is to be done to maximize his or her satisfaction and keep him or her delighted by (1) offering zero defect products. (2) accepting the goods purchased and replacing (3) repayment in case he 'demands (4) giving guarantees and warrantees and act according to the terms and conditions of warrantees and guarantees, (5) having greetings and gifts on the accessions of valued customers' birth days, marriage anniversaries, company events and so on.  Last but not the least, the companies must motivate the employees to serve the customers well by displaying the placards or painted boards in prominent places around company offices The placard or a painted board or, a poster might be drafted as under: 

 WHAT IS A CUSTOMER?  

. A Customer is the most important person ever in the office ... in person or by mail. . A Customer is not dependent on us ... we are dependent on him.   . A Customer is not an interruption in our work ... he is the purpose of its. We are not doing a favour by serving him ... he is doing us a-favour by giving the opportunity to do so. 

. A Customer is not someone to argue or match wits with. Nobody ever won an argument with a customer. 

. A Customer is a person who brings us his wants. It is our job to handle them professionally to him and to ourselves. Finally, winning companies are those who care for perfect matching of four P's from sellers to four Cs of buyers as rightly pointed out by Professor Robert Lauterborn. The following picture gives a clear picture of it 

PICTURE DEPICTING MATCH OF P'S AND C'S 

In a nutshell, the whole circus of marketing depends on the CUSTOMER - the LOYAL CUSTOMER- Who is to be understood in deep in all aspects he or she needs size up needs, counent them wants, match the 'P' and 'C' so that consumer is created. One satisfied consumer created is the multiplier of customers for the company who are attracted, met with their needs, satisfied and delighted and retained longer. All this is possible only when companies understand and implement "Consumer Value" or "Value Chain". ' 

THE ESSENCE OF MODERN MARKETING

 Though selling is an integral part of the total marketing efforts, it does not encompass the whole of the modern marketing concept, particularly in the light of changing philosophy of business. The essence of marketing to day is evidenced in five major areas of endeavor. To fulfill and utilize the marketing concept to serve the needs of the firm and, in turn, increase the sales of the firm through consumer satisfaction. A dynamic marketing organisation must be willing to undertake the following specific activities namely: (1) define the market area. (2) Research consumer needs and wants. (3) Develop and redevelop product and service. (4) Select, train, motivate and control men, and (5) Develop sales approach and advertising support. 

1. Define the Market Area: A person seldom begins a journey unless he first knows, his desired destination, and if he is a careful traveler, he has planned his route, his stops, and his times of arrival and has determined how much it will cost to get there. The same principles or ideologies apply to modern marketing. Basically, there are three major markets that a firm attempts to woo the general consumer market, the industrial market or the service market and the vast and fast growing government market. After a firm has decided where it wants to go, it needs to find what that market segment needs" and is interested in buying. 

2. Research Consumer Needs and Wants: It is the vital step in marketing. A clear distinction between a 'want' and a 'need' is to be made. Thus, a child needs milk and a child wants a candy is a very simple illustration to highlight the difference between the two. Thus, a child needs food and a child wants food in case of duplication. The firm is to realize through research the distinction between consumer 'needs' and 'wants'. The product can be so designed to fill each desire and sold to fit each element of a need or a want. The research will help to know how much consumers buy? How they buy? Where they buy? How often they buy? How much they spend now? How much they can and will spend for the need or a want? Thus, the research department is supported by money, time, and efforts will yield essential information to aid the continuing efforts of giving consumers what they want and need. 

3. Developing and Redeveloping the Product or Service: Keeping a product or a service up-to-date is a continuous process in terms of latest design, functions, appearance, appeal, cost and convenience, to make it highly competitive. This ceaseless activity is inevitable and cooperative part of a firm's development and production division like research and development. Updating refinement is true of any product or service whether it is a good product - a clothing':"" a heavy machinery - a television repairs - a banking or even a case of hair-dressing. It is so because, there is no end for refinement. The advertisements say about it as 'ultimate' in photography or sound or paste or oil or even a soft-drink, wife, husband and so on.

4. Selecting, Training, Motivating and Controlling Manpower: It is very rightly emphasized that an organization‟s greatest strength and wealth are in its people. This is certainly true of market or consumer oriented firm. The manpower development function consists of recruitment, selection, training and placement from department head to the salesman, is vital to the success of an organisation. Each employee's knowledge, attitude, approach, skill, talents are important to the overall success of the unit. There must be a well-planned programme to enable the employee to meet the firm's total commitment and personnel standards. A good training programme prepares the fresh hands to the various work positions. More than this training, there should be a permanent basis to assure that each employee can continue to function to his full capacity and enthusiasm. Employee control concentrates on judging the contribution of each towards the goals of market oriented organisation at large. 

5. Developing Sales Approach and Advertising Support: It is very often said "nothing happens until some one sells something." This is what that starts the wheel of marketing moving - the production line puffing-the shipping clerk wrapping-the claim clerk processing and the overseer all these activities. Before selling begins, important decisions must be made as to how the product will be sold'! Whether direct sale or through agents'! What is the channel'! Its length'! Cash and credit'! Areas of sales and the like. Another effort is marketing is that of advertising. Advertising is to compliment the overall company image and intent. It is not the force to supplant the sales-force. Advertising can be used to whet the appetite of the defined market, to herald the good news of the arrival of a product and to inform the potential customers of the places where it is available. There should be a perfect integration of the ideas of advertising, sales, production and finance personnel. 

      In a nutshell, the modern total-concept of marketing is more than mere selling. It is a concept that encompasses these five sets of activities. It is a concept that permeates every organizational division in order to be successfully fulfilled. There are no short cuts in acquiring and developing or activating the marketing concept. If an organisation is to be groomed properly for its competitive battle in the market place it must function through a sound, well-planned and elastic market oriented programme. 

MARKETING MANAGEMENT 

What is it ? 

Marketing management signifies an important functional area of business management responsible for the flow of goods and services from the producers to the consumers. It is one accountable for planning, organizing, directing, coordinating, motivating and controlling the marketing activities. In effect, it is the demand management under customer oriented marketing philosophy. Marketing management is the management of the crucial and creative task of delivering consumer satisfaction and thereby earning profits through consumer demand. It is the performance of managerial functions of planning, execution, coordination and control in relation to the marketing functions of marketing research, product planning and development, pricing, advertising, selling and distribution with a view to satisfy the needs of consumer, business and society.  

       According to American Marketing Association, if is "planning, production and control of entire marketing activity of a firm or a division of a firm, including the formulation of marketing objectives, policies, programmes, strategies and reappraising product development organisation to carry out the plans, professional working operations and controlling performance". In the words of Prof. Philip Kotler, "It is the analysis, planning, implementation and control of programmes designed to bring about desired exchanges with larger audiences for the purpose of personal or mutual gain. It relies heavily on the adaptation and coordination of product pricepromotion and place for achieving effective response." The above expressions bring home very clearly the very substance of marketing management as a matter of planning, implementing and controlling the marketing programmes. Marketing management is the marketing concept in action. It includes all activities which are necessary to determine and satisfy the needs of consumers. To be very simple, marketing management sets marketing objectives, develops marketing plans, organises marketing functions, puts marketing plans and strategies in action and monitors the marketing programmes .in the final analysis. Effective marketing management requires the ability and the skill of-highest order. It warrants close- appreciation of the consumer and an understanding of forces of change which are at work in the environment and which have deep-rooted impact on consumer buying habits and motives. It calls for fertile imagination and creative skill in planning to meet the changing conditions of the market place; it also requires skills of coordinating and controlling the wide-spread and complex activities of a dynamic organisation. The prime purpose of marketing management is to know the consumer so well that the firm is able to offer him or her products and services to which the consumer remains loyal and the new consumers keep on coming at increasing level. 

OBJECTIVES OF MARKETING MANAGEMENT 

The objectives of marketing management are derived from the overall objectives of business. The overall objectives of business are profit-making, growth and service of society among other things. Marketing management can contribute towards the achievement of these objectives by developing and distributing products and services which satisfy the needs of customers and give profits to the business enterprise. In brief, the objectives of marketing management are: 

1. Creating Customers: A business from established to sell a product or service to customers. Therefore, the customer is the foundation of a business. It is the customer who provides revenue to business and determines what an enterprise will sell. Creating customers means exploring and identifying the needs and requirements of customers. If a firm is to go and stay in business, it must create new customers. It should analyze and understand their wants. 

2. Satisfying Customers‟ Needs: Creating customer is not enough. Business should develop and distribute products and services which meet the requirements of 

customers of their satisfaction. If customers are not satisfied, the business will not be able to generate revenues to meet its costs and to earn a reasonable return on its capital. Satisfying customers does not simply mean matching products with customers' needs. It also requires regular supply of goods and services of reasonable quality at fair prices. 

FUNCTIONS OF MARKETING MANAGEMENT 

Victorious marketing management calls for integration of market related elements. The task of marketing management is to combine these elements into an effective operating system and to arrange the system in its interaction with a dynamic environment. These functions are: 1. Assessing the marketing opportunities 2. Planning marketing activities. 3. Providing effective marketing organisation. 4 Actuating by leadership. 5. Motivating the human-side and 6. Evaluating and adjusting marketing efforts. 

1. Assessing the Marketing Opportunities: It involves the identification of the company goals and the analysis of established and new profit opportunities open to the firm. The significance of this function is that the market opportunities are changing and the marketing management must develop creative strategies to cultivate these opportunities. That is a planned programme of innovations is essential for the marketing effectiveness. That is to say, the firm must respond to the market and adopt a broad and dynamic view of the marketing opportunity. New opportunities are best with challenges. Thus, the firm should be ready and willing to accept and shoulder the risks of the possible venture. 

2. Planning the Marketing Activities: Planning is an integral part of marketing management and is the vital element of the systems orientation. This function is based on the marketing opportunity which is key to the successful marketing management and performance. Marketing planning is used to develop and define objectives and then derive strategies and design programmes that enable the firm to achieve these set aims. The systems approach warrants a concise statement of these goals and encourages systematic analysis of the impact of the programmes devised. Planning 

provides the basis for integrated marketing strategy to make planning central to the marketing concept, both short and long-run. Thus, planning is the prelude to other functions of marketing management. 

3. Providing Effective Marketing Organisation: The innovative and' dynamic nature of marketing activity places heavy demands on the marketing organisation. As marketing is an accepted system, the role of organisation is felt more. The interaction process between the organisation and the environment is a focal concern of developing marketing discipline. Application of the newer organisation theories may have impact on the marketing operations. New product developments and the growing importance of international marketing are some of the marketing changes that have raised organisational problems for the unit. Thus, the organisation provided is to be accommodative in the light of changing concept of marketing.  

4. Actuating by Leadership: Diverse changes are influencing the patterns and styles of the leadership required for effective performance of marketing functions. Development of newer patterns of leadership are testing the traditional views of management methods and policies. For instance, one organizational problem is raised by the tendency towards centralisation of responsibility for integration of total marketing tasks. Balanced against this centralization tendency is the need for greater participation in management and decision-' making by people at subordinate levels. The solution needs analysis of management philosophy, communication pattern, scope of authority and responsibility, leadership activities and staffing policies and practices and the placement of an individual in the organisation, in a given position. 

5. Motivating the Human-side: Marketing involves the functions that are finally identified with the people. Free flow of goods will be there only when the people involved in the process are motivated. Employee motivation is a must in these days of keen competition. The question of to-day's management is not to create a suitable man for the management, but to keep him longer as a loyal and humble employee so that the benefits of stay are fully enjoyed by the unit. That is why, new ways of encouragement or stimulation are to be introduced where the individual unfolds his 

latents and initiative to contribute the best of his. 

6. Evaluating and Adjusting marketing Efforts: In order to take advantage of profitable marketing opportunities, the marketing manager must continually evaluate and adjust the market efforts. The firm is to adjust to its ever changing environment. To make an effective judgement, the marketing manager must have the knowledge of the entire marketing system so that the components of the system can be evaluated, controlled and adjusted to bring the system in lien with the marketing activities on one hand and the opportunities on the other. Essentially, the-major challenge confronting marketing management is that of creative adaptation to change. To meet this challenge, the firm should have a complete appraisal of its marketing operations through marketing audit, research and other control devices. 

NEW WAVES OF THOUGHT IN MARKETING 

The growth and refinement in any field is the manifestation of the creative thinking on the part of Thinkers, marketing is no exception to this. Original conceptualization of idea and concepts has been refined and further refined making marketing discipline more responsive, realistic and amendable. There is no end for this continuous flow of new ideas that infuse dynamism in this ever-growing discipline. Following are some such instances that have been recently conceptualized, challenged, debated and crystallized. 

1. Social Concept: Social or societal concept of marketing has been the brainchild of Prof. Philip Kotler and his team. In his own words "the societal marketing concept calls for a consumer orientation backed by integrated marketing aimed at generating customer satisfaction and long-term consumer welfare as the key to attracting long-run profitable volume." As noted earlier, this concept has all the ingredients of 'modern marketing concept.' The additional dimension is concerned with long-run consumer welfare. There are good many products and services which satisfy the consumers' needs and wants in the short-run but dissatisfy in the long-run because short-run consumption and individual satisfaction has long-run ill fare as consumer cannot be free from ecological problems. For example, moving from cycles to mobiles satisfy their own needs but create problems of air pollution, parking, traffic congestion and increased accidents. Varieties of alcohols, cigarettes and narcotics create the problems of health hazards and law and order improved soaps and detergents help in household washing but have impaction reuse of water for irrigation and drinking purposes. There are countless problems of this kind where short-run satisfaction is turning in long-run consumer welfare being demand. The essence of societal marketing concept is dethrusting of excessive corporate concern over short-run individual consumer needs and their satisfaction, by emphasizing long-run consumer interest. It worries more about the needs of society, as a whole, as against individual desires, whims and fancies. It spotlights the promotion of what is known as "responsible individual conception with the awareness but its social implications."  

2. Meta Marketing Concept: This term 'meta marketing' was originally used by Prof. Kelly EJ. Here, 'meta' means 'more comprehensive.' In the words of Prof. Kelly E.J. "meta-marketing is to designate a new, although related discipline which deals critically with marketing as a discipline." The concern of meta marketing is to bring the whole of scientific, social, ethical and managerial experience to bear on marketing. The essence of this definition is pointed out by Prof. Philip Kotler as meta marketing is the set of processes involved in attempting to develop or maintain exchange relations involving products and services, organizations, persons, place or causes. It is an attempt to widen the horizons of marketing by covering non-business organizations. Like the marketing mix of business organisation, non-business organisations do, have their marketing mix. The best examples of met a marketing can be selling of family planning ideas or the idea of temperance or prohibition. In this process, they activize one or more of the marketing mix. Similar are the examples of organizations like temples, churches, mosques, gurudwaras, schools and colleges, hospitals and clubs and other service units. 

Though meta-marketing emphasizes only the sales concept as against marketing concept, it has contributed to shape and reshape the thinking of men of eminence. It has given us the insight into the relevance of marketing new areas. 

3. Demarketing Concept: Demarketing is another recent marketing concept which is applicable to the world of underdeveloped countries. "Demarketing is that aspect of marketing which deals with discouraging customers, in general, or certain class of customers in particular on either a temporary or permanent basis." By nature, the underdeveloped countries as featured by exceeding demand in relation to the supply of goods and services. Here, demarketing concept supports the fact the management of excess demand is as much a marketing problem as that of excess supply and can be achieved by the use of similar marketing technology as used in case of managing excess supply. It may be employed by any organisation to reduce the level of total demand without alienating loyal customers, to discourage the demand coming from certain segments of the market that are either unprofitable or possess the potential injuring the loyal buyers to appear to, want less demand for sake of actually increasing it. Pulling the concept further, Prof. Philip Kotler and Prof. S.l. Levy say that the marketing task is not blindly to engineer increase in demand but to regulate the level and shape of demand so .as to conform it to the organization‟s current supply situation and to its long run objectives, because there is no danger in damaging customer relations in any demarcating strategy. 

4. Macro Marketing Concept: Macro-marketing concept as presented by Prof. R. Meyer refers to the study of marketing within the context of entire economic system with special emphasis on its aggregate performance. Stated in other words, it studies the aggregate role of the different components of the marketing mix employed by different marketers operating within the economic system and the way in which they interact with the socio-economic life of the society at length. . 

To-day, the study of marketing in the broader context of the economic system is gaining much importance as marketing discipline is assuming a social dimension. 

This is more so in case of fast developing countries where contributions of marketing towards economic development are realised. In fact, the aggregate performance analysis implies the analysing, the contribution of marketing towards the various facets of economy. Macro-marketing is an attempt to study the ways in which the different components of marketing mix may be used for the promotion of much needed economic development of a society or its factions. 

5. Remarketing Concept. Remarketing is a concept that speaks of extention strategic marketing. Remarketing is to do with finding alternative uses for the existing product or products together. It also conserved with creation of new users. Perhaps the best example can be that of nylon a synthetic fibre which was used to weave parchute cloth and making of nylone ropes in place of cotton cloth and coir ropes that had some drawbacks. However, today nylone is used in making scrubbers- both kitchen and non-kitchen flooring, tents, zips, brushes, bristles, artificial hair, uphostery cloth and so on. Remarketing elongates the life cycle of the product which means optimum utilisation of resources and greater satisfaction to the society. This strategy has become more pertinent in the evake of proliferation of competitive products. In that sense, it is also called as 'morph' marketing. The word 'morph' means form or features. The word 'morphology' deals with the form, features and structure and the added benefits or value increased from form change. It is rewriting the core benefits of brands and delivering them in a unique manner which he or she never drempt of it. Value addition is the key to build consumer loyalty. It speaks more of quality than of price. Lakme Company of India has set up chain of beauty parlours in megopolies. At present, there are more than 600 units working successfully and by 2002 end the target set is 6000 parlours where only Lakme beauty products will be sold'. These parlours are functoining or franchise basis.  

6. Over Marketing. As the caption suggests, the companies engaged in over marketing focuses their attention on increasing sales by all possible means. These concerns might neglect quality control and production efficiency and benefits arising 

out of them. It is a case of down trading; that is reducing quality standards and benefits of efficiency and economy and diverting all their resources in increasing sales. The question is pushing the sales. It works well in case of rural markets and new markets. In fact, the company might gain but the society is bound to suffer as they are not getting real value for the price they pay. 

7. Synchro-Marketing. Demand for variety of goods, especially seasonal, fluctuates greatly causing an imbalance making the parties to suffer or gain. The most common items are water-proof products used during rainy season and woollen clothes and cloth used in winter season and so on. These other items that enjoy demand at peak only during certain season of the year. In case of school children school bags, uniforms, socks and shoes. During off season, prices fall and with that nobody likes bla,* the money. The problems associated with fluctuations in demand and supply conditions can be adjusted through price adjustments and special offers. During off season price incentives are 'given and more money is spent wisely on promotion. Even to draw the attention during the prepeak period, the firms speak of fresh arrivals, variety of merchandise and brands and so on. Such an attempt is called as synchro-marketing where the interests of marketers are protected by granting or wooving the customers and maintain yawning gap between demand and supply. Promotion mix is so blended that it works well in mainting balance between the on and off season fluctuations. 

8. Counter-Marketing. One thing is sure that there is something called business ethic controlled behaviour responding to the requirements of the well being of the society. Counter marketing is a deliberate attempt to damage or totally kill the demand for the goods and services because their known for harmful effects on the consumers, the suppliers and the people engaged in making avail~ these products and services. We all are aware that excessive drinking or even occasional smoking, hail unsafe sex, use of powerful pesticides, wormicides, fertilizers, drugs have some such examples. In Cat of such products the demand is virtually killed or an attempt made 

to kill by supplying safe alternati~ One is aware that use of D.D.T. is totally banned which widely used in 1950 and 60s in eradicating maim Similarly pencillin products are also banned in view of long-term in effects. In case of hot stuff I1 cigarettes statutary warning is also given. The diea is to encourage self- regulation rather than governmelu regulation. Of late, environmental friendly and customer friendly pesticides, wormicides, drugs, medicin~ hot drinks, cigarettes are developed for once the consumer is used to these he or she becomes an awls and enters the point of no return. It means that profiteering is not motto but servicing the justifiai needs of the society. 

9. Mega-Marketing. Mega-marketing, is the set of those strategies where closed markets an opened up. These strategies may be economic, psychological, political, public relation skills and ga~ cooperation of strongly opposing parties. There can not be better example than that of Coca Cola a« Pepsi Cola, the American multi-nationals and products famous all over the world. Prior to 1977 wha Indiraji was in power, she banned Coca Cola encouraging national companies to come out with smell cola; Swadeshi companies took advantage and Paris Company came out with Thumbs up which was I thundering success. With the fall of Indiraji, Coca Cola given a big booty to Parle Company allowing sell its products along the products of Coca Cola. The rival company namely Pepsi Cola was to neat and successfully enter allowing Parle Company to sell its products like Limca and Gold Spot. Pepsi-startd selling Pepsi Cola and slowly introduced Fanta Orange. New a big war is going on between Coca.CoL and Pepsi Cola which spend yearly 3500 to 4000 crores of rupees on advertising in maintaining art increasing the demand. The war of advertising has been so fierce that Hindi is freely used in English,' a part of slogans which are changing. If Pepsi says "Dilly Mange More" the Coca Cola says "Thinly Vane Coca Cola" a "Enjoy Coca Cola 10 Phi Ho lai". Thus, happy days are again gain where co~ was banned in India. 

10. Green-Marketing. "Green" or "eco" marketing is the order of the day.Imbalance in the eco-systems or environment is going to affect as flora-and-fauna are badly affected. Take the example of rabing trees in the forests to make more area for cultivation and accommodation has resulted in redu! Rain fall; global warming has resulted and if care is not taken of environment in which we are living a die will come where more and natural calmities will because finally digging our own graves. That is w~ every effort is made protect endangers spicier of flora and fauna al1d eco-systems. If we do not cavil for protecting the forests, no rains, no rains no water; even the ground water is in short so much so the a litter of water might cost more than a litter of petrol. These manmade emblems of environments imbalances are having impact on every human activity and marketing is no exemption too. Whatever product we are using be it a Car, Watch, Cup, medicine, pesticides, fertilizers are to be environments~ friendly which are bio- degradable. Thus, paper bags are fast replacing the plastic carry bags; lei pollutants cars and three and two wheelers are produced and marketed. 

11. Event Marketing. Event-marketing is concerned with exploiting the happenings of an evil in every walk of social life. . Wise marketers have designed certain promotional tools to introduce, popular and expand the demand for their products or services. Entertainment and the sports are the moo common areas where event marketing is fully exploited. Sponsorship, patrionage public relations is vehicles of advertising especially out door are used. Cricket, foot-ball, tennis, and other sports war ha cups and trophies sponsored by rich and famous companies such as Sahara, Pepsi, Coca-Cola, LG, Wills, Titan, Benson and Hedges, Reliance, and the like. Musical Nights do form the part of event marketing Again, national and regional fairs and melas are quite common. Best example in India is that of Push melas held every year in Rajasthan. It is largely attended where nearly 3 to 3.50 cores of people participat India is a wonderland of festivals and melas where fairs and melas range around 5000 spread over a wee! to months and occurring yearly to twelve years once such as Kumbhamelas. . These huge gatherings d denotees, fans, create marketing opportunities on which marketers encash upon. Even new year, new decade, new 

millenium are the great events where special schemes are planned and excuted to boost the sale of products and services including ideas. ' 

12. Speed Marketing. Speed-marketing is also called as 'turbo' marketing. Turbo marketing is an attempt to emphasize the time value. Everyone has realised that life is short-lived and the philosophy of life and value of life styles is that one should enjoy the best things in life by whatever means- beg, borrow or steal. Again, everyone is thinking in terms of speed-in: making money, having possessions, and this value system has given scope for speed-marketing. Today one is going to succeed when he meets the requirements of consumers well in time. It is a competitive edge that made marketers to compete away the consumers by matching their needs in terms of time. Turbo marketing is generally found is five areas of successful marketing namely, innovation, manufacturing, logistics, retailing and services. The first element is of top importance where others follow automatically. Speedy innovations have changed the world of industry and marketing. It is the latest technology that stems from innovation. At present quartz watches have sent winding watches to trash boxes; gel pens virtually killed fountain pens; plastic or PVC technology has very badly affected the glass industry and, hence, products; synthetic or artificial fibers virtually swept for decades pure fibers like Silk and Cotton, jute and products made of these inputs. If you say 'no' customer other competitors are ready to serve with however the customers.

 13. One to One Marketing. 'One to one' marketing is also called as 'One on One' marketing. For long, markets were segmented on the principle the each person is different having him own likes and dislikes, preferences but such persons with differences can be lumped into broad category on product or personal bases of segmentation and the developing a marketing mix for each such segment. The latest trend is that one is same in all respects because consumer is unique more psychologically and hence his feelings, preferences have to be accommodated. Today's customers are more worried about their status, life-style, showmanship, 

where their individual needs are to be met at any rate. When a customer buys say a cycle, it should be according to his specifications which stands out. One to one marketing implies as if only one customer there and the producer and dealers at his command      meeting all the market mix variables. It is like specific cloth is purchased for his shirt and paint and is stitched according to his specifications in detail not like ready ware. That is the product is to adjust to the customer and not the customer to adjust to ready garments. This concept matches perfectly to the statement "Consumer is the King". , 

14. Word of Mouth Marketing. Three is no better and effective way of marketing through personal communication. This is the latest trend. Today, consumers are in a state of utter confusion as there is influx of competitive products in each area. Whenever a product is launched, the competitive are waiting for the success and the accent of it and ready to launch similar product. In case of mineral water-Bisleri made a thundering success and is continuing; others followed the suit and today we have mineral water branded by international and national companies. Soon the other brands appeared, as 'Aquifers', 'Bellow', 'Kenly'; these are the leading and we have other companies meeting local needs varying from State of State. What is true is true of most of the consumer nondurable and durable goods. A consumer pay their hard earned money through nose, they want real value for money. They do not go by advertisements but the experience of other consumers. Only after gathering good deal of information they decide to go in for a particular brand of a given product. There the recommendation by exposed consumers plays important role. This is known as "Kuchikomi" technique in Japanese language. In advanced nations where TV, press media dominate, of late 60 to 70 precent of consumer goods are made on the basis of word of mouth communication and barely 30 to 40 percent by other means. This word of mouth marketing is supported by other techniques of marketing namely person marketing, image marketing, relationship marketing, compt marketing, direct marketing, net-work marketing, and internet marketing and so on. 

15. Business to Business .Marketing: Many people misunderstand "business to business' marketing to "industrial" marketing. It is because the theme underlying is "reciprocal buying". In other words, market dealings take place on the statement "If you look at me, I will look at you". Reciprocal buying is applicable both in industrial good marketing and consumers' goods marketing. However, business to business marketing is the marketing of goods and services to commercial. enterprises, government departments and even non-profit making organisations who use these goods and services for producing other goods and service for sale back to industrial customers. In other words business to business marketing is the marketing that takes place between two business parties namely business buyers and sellers and not the final users for final consumption. Reciprocity is the natural base because the market for such products are highly concentrated, purchases are not very regular, the unit of purchase though lesser in number, the value is of high order and marketing deals take longer negotiation period. It is not one man's decision as in case of consumer goods but the organisational decision. 

CONSUMER VALUE SATISFACTION AND RETENTION  

The Rex of the colourful world of marking is the CONSUMER. Each industrial unit and marketing unit is working hard in understanding his or her mind because mood of market changes like a fickle minded mistress. Marketing and marketing management activities have come up in a big way to understand the consumer.  All though his or her mechanism of inner feelings. Infact the, the science and art of marketing management has failed him or her mechanism of inner  of his to the marketers are converted into  management has failed him or her to understand at all the time, at all the place, all the  consumersr problem and challenge into satisfactory solutions and opportunities will surive and survive successfully Undetstanding the  she is a unique rational and social animal. The challenges of his to the marketers are c opportunities. It is only those firms which are ca1able of  surive and successfully. Understanding the Rex and the Regina  of marketing world is not an easy tak. With all care and caution, the actual calaulations made on factual data, kiss the dust. President of America has ordered an inquary into 400 billion dollars  scam in 

information technology on 28th June, 2002 caused by overstated 'the profits on corporate world. Therefore, the marketers, and hence, producers and manufacturers have to be able to read the real needs of consumers. give them real value for money, retain them longer. That is why this  chapter deals with these major and critical aspects as marketing tasks that starts With consumer value or consumer value chain and ends with retaining the consumers at any rate and cost longer.