5 Important Concept of Marketing Management Philosophy

Every company can have different ideas or philosophy. For example, a particular company can have its idea or philosophy that if the production is done on a large scale, the cost would be less and the product would be sold automatically.

In this way, such a company will concentrate mainly on the large scale production of goods. Similarly, some other company can have a different idea. It may have an idea that if the quality of the product is improved, there will be no difficulty in selling the product.

Under the marketing management philosophy, we shall study the following five concepts:

(1) Production Concept

(2) Product Concept

(3) Selling Concept

(4) Marketing Concept

(5) Societal Marketing Concept

1. Production Concept

Those companies who believe in this philosophy think that if the goods/services are cheap and they can be made available at many places, there cannot be any problem regarding sale.

Keeping in mind the same philosophy these companies put in all their marketing efforts in reducing the cost of production and strengthening their distribution system. In order to reduce the cost of production and to bring it down to the minimum level, these companies indulge in large scale production.

This helps them in effecting the economics of the large scale production. Consequently, the cost of production per unit is reduced.

The utility of this philosophy is apparent only when demand exceeds supply. Its greatest drawback is that it is not always necessary that the customer every time purchases the cheap and easily available goods or services.

2. Product Concept

Those companies who believe in this philosophy are of the opinion that if the quality of goods or services is of good standard, the customers can be easily attracted. The basis of this thinking is that the customers get attracted towards the products of good quality. On the basis of this philosophy or idea these companies direct their marketing efforts to increasing the quality of their product.

It is a firm belief of the followers of the product concept that the customers get attracted to the products of good quality. This is not the absolute truth because it is not the only basis of buying goods.

The customers do take care of the price of the products, its availability, etc. A good quality product and high price can upset the budget of a customer. Therefore, it can be said that only the quality of the product is not the only way to the success of marketing.

3. Selling Concept

Those companies who believe in this concept think that leaving alone the customers will not help. Instead there is a need to attract the customers towards them. They think that goods are not bought but they have to be sold.

The basis of this thinking is that the customers can be attracted. Keeping in view this concept these companies concentrate their marketing efforts towards educating and attracting the customers. In such a case their main thinking is ‘selling what you have’.

This concept offers the idea that by repeated efforts one can sell-anything to the customers. This may be right for some time, but you cannot do it for a long-time. If you succeed in enticing the customer once, he cannot be won over every time.

On the contrary, he will work for damaging your reputation. Therefore, it can be asserted that this philosophy offers only a short-term advantage and is not for long-term gains.

4. Marketing Concept

Those companies who believe in this concept are of the opinion that success can be achieved only through consumer satisfaction. The basis of this thinking is that only those goods/service should be made available which the consumers want or desire and not the things which you can do.

In other words, they do not sell what they can make but they make what they can sell. Keeping in mind this idea, these companies direct their marketing efforts to achieve consumer satisfaction.

In short, it can be said that it is a modern concept and by adopting it profit can be earned on a long-term basis. The drawback of this concept is that no attention is paid to social welfare.

5. Societal Marketing Concept

This concept stresses not only the customer satisfaction but also gives importance to Consumer Welfare/Societal Welfare. This concept is almost a step further than the marketing concept. Under this concept, it is believed that mere satisfaction of the consumers would not help and the welfare of the whole society has to be kept in mind.

For example, if a company produces a vehicle which consumes less petrol but spreads pollution, it will result in only consumer satisfaction and not the social welfare.

Primarily two elements are included under social welfare-high-level of human life and pollution free atmosphere. Therefore, the companies believing in this concept direct all their marketing efforts towards the achievement of consumer satisfaction and social welfare.

In short, it can be said that this is the latest concept of marketing. The companies adopting this concept can achieve long-term profit.

TAKEN FROM

http://www.yourarticlelibrary.com/marketing/5-important-concept-of-marketing-management-philosophy/1076/

UNIT II MARKETING PLAN - Developing and Implementing Action Plans and Monitoring and Evaluating the Marketing Plans

Developing and Implementing Action Plans

The core of the marketing plan is developing and implementing action plans. The core activities that are essential for reaching marketing objectives are called as Action Plans.

Success comes to those hotel marketers who make decisions and take action based on what they have learned about their property, the competition, the market place and their guests.

The analysis of this data helps to identify:

What areas need sales activity (prioritizing sales task as per need)

At what time of year the business is expected to pick up

The appropriate market segments to be targeted to fulfill objectives

There should be detailed action plans for each market segment and operations area (Restaurants, Banquets, and Rooms etc.) and the responsibility for implementing action plans should be assigned to specific individuals.

Action plans should be very specific involving the following five areas:

A.    A description of the types of business and the market segments to be taken care of –  A hotel might want to increase room revenue by associating itself with local travel organizations or an internet site like www.makemytrip.com

B.   Target Customers – Hotels can target customers who have been regularly visiting the hotel. They may also make an action plan to attract new customers in different demographic segments.

C.   Rates/Special Plans/Packages/Promotions – To attract the business, hotels may have different package rates for different market segments and may give special discounts to the channels giving maximum business (Travel agents, Tour Companies etc.).

D.   Aim of the action plan (Objective) – It is not enough to say “increase meeting rooms business.” A specific goal – “Increase meeting rooms business by 20% over weekend period in July” – will help in establishing action steps and monitoring progress toward meeting the objective.

E.    Action Steps – The specific steps that will be taken to achieve marketing objectives. Each action plan should include the who, what , why, when, and where of each step if it is to meet objectives.

Internal marketing initiatives should be taken so that the employees are aware of the efforts by the marketing team. Employee involvement in action plan reaps rich dividends and can be taken seriously to meet marketing objectives of the organization.

Monitoring and Evaluating the Marketing Plans

The periodic review of marketing strategies to take corrective action throughout the planning cycle is known as Monitoring and Evaluating the Marketing plans.

The more carefully the marketing effort is measured, the easier it will be to plan future activities and programs for building business and profitability. Monitoring and evaluation of the marketing plan should be done periodically so that the corrective action can be taken throughout the planning cycle. Methods of monitoring the marketing plan include:

1.    Recording the number of room nights for each market segment – This method results in a report that facilitates the comparison of actual results with marketing plan goals

2.    Comparing the number of restaurant covers sold before and after advertising.

3.    Survey the part of city, regions and different locations to determine which media are most effective in local advertising. This type of analysis is especially effective for restaurant promotions and weekend packages.

4.    Tracking prospecting results and sales production versus goals by sales people.

5.    Keeping track of each sales person’s output periodically. Business booked by the sales staff during peak and off-peak periods. Repeat business versus new business booked by sales staff

6.    Evaluating cost of internal marketing campaigns by monitoring the average expenditure by each guest prior to and through out the promotion.

7.    By recording direct mail responses and telephone enquiries in a log book. This type of monitoring not only gives an indication of the effectiveness of the advertising campaigns, but may also provide insight into the strengths and weaknesses of the sales staff.

Remember, control is an essential part of the marketing plan cycle, and periodic evaluation should be designed into the plan from the beginning. A record should be kept each time an advertising campaign is run, any strategies that do not contribute to the bottom line can be immediately re-examined.

If action plans are effective and objectives are realized within established budget limits, corrective action need not be a part of the process. However, if the hotel sales are not being met, the problem can often be traced to:

a)    Lack of responsibility – The marketing team member or team leader for a revenue center has not assumed responsibility for seeing that schedules are met and evaluations of results have been made.

b)    Lack of Communication – Sales people or other employees are not aware of their role in the marketing plan.

c)    Lack of Time – Insufficient time has been allocated for making outside sales calls or direct advertising efforts in the required markets

d)    Lack of Authority – Sales people have not been given the authority to commit the budget for specific marketing efforts

e)    Lack of Control – Outside factors (the economy, the energy crisis, and weather conditions) have made it necessary to lower the marketing plan goals.

f)     Lack of Realistic goals - Guests have been targeted at a time when they are not planning to buy; or the sales goals are simply too high.

Whatever the reasons for lagging sales, one must determine that enough time has been given for the plan to work and that corrective measures have been taken to build sales in each market segment. Objective evaluations and corrective actions may prevent costly mistakes and can lead to more effective marketing strategies in subsequent years.