Marketing Aptitude Study Material – Marketing Management & Planning

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Marketing Aptitude Study Material – Marketing Management & Planning

Marketing management is a business discipline which focuses on the practical application of marketing techniques and the management of a firm’s marketing resources and activities. Marketing management employees various tools from economies and competitive strategy to analyse the industry, context in which the firm operates.

Characteristics of Marketing Management

• Marketing management is consumer oriented.
• Marketing management is a specialised branch of general management.
• It considers consumer satisfaction as a marketing activity.
• It is based on the principle of socio-economic satisfaction.
• It lays emphasis on beneficial results of sale instead of quantity of sale.
• It lays emphasis on integrated marketing.

Objectives of Marketing Management

• To determine the marketing objectives for which all the functions will be performed.
• Forecasting sales for future, preparation of marketing programmes, formulation of marketing policies and strategies regarding production, etc.
• Organisation, for the purpose of marketing management, means the determination of organisational structure of marketing department.
• Helps in taking decisions regarding prices of the porduct.
• Helps in the production activities of an organisation.

Concepts of Marketing Management

There are four main stages o f the marketing concepts which are as follows

• Consumer Oriented Concept Orientation to consumer needs is the main target for the success of marketing activities. More customers know what they need. This is the main reason that while deciding the production targets in industrial business, consumers desires present itself as a paramount.
• Marketing Oriented Concept Marketing orientation has three common alternatives such as sales orientation, product orientation and production orientation which can be adopted by a company. With marketing orientation, a business revolves its strategic decisions around the wants and needs of the target market, including potential customers.
• Consumer Satisfaction Concept According to this concept, the position of consumer is the foremost position in all the business activities. Business can achieve the long-term prosperity by satisfying its customers which induce the customers to repurchase.

Businessmen should keep the following points in mind

1. Consumer is always correct.
2. Consumer is the king of the market.
3. Consumers position is at the top.
4. Consumer is a boss.

• Consumer Welfare Concept It seems to be the best marketing concept.It focuses on consumer needs and wants, profits and also the social welfare. This helps in improving the image of the company.

Importance of Marketing Management

In Indian economy, the significance of the marketing management could be described in the following way

1. Procuring Maximum Results with Minimum Efforts In our country, the resources are quite limited. By the minimum efforts, we have to achieve the maximum results. It could be possible only when we understand the significance of marketing.
2. Importance for Consumers Consumer can select the product in an effective manner if he is properly aware about the concept of marketing.
3. Increase in Living Standards Organisation provides new products to the society which helps to increase their living standards through marketing. For this, different ways of better living can be discussed on the basis of advertisements and sales promotion.
4. Economic Growth Through marketing management, economic growth can be achieved because when there is less marketing and usage of the product by the consumer, there will be idle stock of manufactured goods and raw-metearial accumulated with the manufacturers.

Functions of Marketing Manager

• To work with the top management.
• To supervise and coordinate various activities of his department.
• To maintain the existing markets and to discover the new markets for the products.
• To evaluate the product from time to time so that necessary modifications and alterations may be made in the product.
• To study the needs of the market from time to time so that new product may be introduced in the market to attract more consumers.
• To select specific channels of distribution according to the needs and requirements of the enterprise.
• To prepare marketing programme.
• To keep himself in touch with the economical and political environment so that he may take the necessary decisions.

Difference between Marketing Management and Sales Management

Basis	Marketing Management	Sales Management
Responsible	It is responsible for a person going to a particular store.	It is the reason that the person buys a product from that store.
Part	It is not the part of sales management.	Sales management is a part of marketing management.
Purpose	Its main purpose is to increase the prosperity of business.	Its main purpose is to sale the product.
Relation	It works as an independent concept.	It works under the concept of marketing management.
Scope	It has a wide scope.	It has a limited scope. .

Marketing Planning

Marketing planning is the process whereby companies reconcile their objectives and opportunities.

“Marketing planning is the work of setting up objectives for marketing activity and of determining and scheduling the steps necessary to achieve such objectives. ”
–The American Marketing Association

Elements of Marketing Planning

• Determination of objectives
• Forecasting the future
• Policies Procedures
• Programmes Schedule
• Rules Strategies
• Eudget

Objectives of Marketing Planning

The objects of marketing planning in an enterprise can be described as follows

• To formulate marketing plans on the basis of sales forecasting.
• To minimize future uncertainties as for as possible.
• To co-ordinate the activities not only of its own department but it helps in co-ordinating the activities of all the departments of the enterprise.
• It helps in controlling the activities of all the departments of the enterprise.
• It makes a difference between the problems of key nature and that of routine nature.
• It helps in checking all the wastages in the enterprise.
• It is helpful in maintaining healthy competition with in enterprise.
• Helpful in increasing the efficiency of employees.

Importance of Marketing Planning

• It prepares planned strategies and programmes for the future so that future uncertainties may be minimized and the objectives of the enterprise may successfully be achieved.
• The objectives of the enterprise are clarified by marketing planning and clearly explained to all the concerned employees of the enterprise.
• It helps in co-ordinating all the managerial activities of the enterprise.
• It increases the organisational efficiency by making decision making process quick and by defining individual duties, rights and liabilities of all the employees of the enterprise. ,
• It checks all unnecessary expenses and hence leads to economy in the operations of enterprise.
• It is helpful in controlling functions.
• It stresses upon the achievement of pre-determined objectives of the enterprise through maximum satisfaction to the consumers.

Process of Marketing Planning

Process of marketing planning includes the following steps

Step 1 Goal Setting

• Mission
• Corporate objectives

Step 2 Analyzing the Current Situation

• Marketing audit
• SWOT analysis
•  Marketing assumptions

Step 3 Creating the Marketing Strategy

• Marketing objectives and strategies
• Forecasts of expected results
• Create alternative plans

Step 4 Allocating Marketing Resources and Monitoring

• Marketing budget
• Detailed action plan

Market strategies means methods to improve marketing activities. Good marketing strategy envisages good and proper relationship management.

Classification of Marketing Planning

Marketing planning activities can be divided into three parts

1. Long-Term Planning It means planning for a period of more than one year. It involves the devlopment of basic objectives and the determination of fundamental policies to guide future efforts of an enterprise. Generally, this type of planning relates to the planning of a new product, product diversification, expansion of product line, etc.
2. InShort-Term Planning It is the planning of marketing activities for a period of less than one year. This type of planning is the liability of medium level of management. The problems to be dealt by this planning are adjustment in the prices of products to face the competition, adjustment in the quantity of production to meet the changes in demand.
3. Adhoc Planning It is the planning of activities to be performed in the future. Adhoc planning is not a regular and systematic form of planning and it is the solution to the problems arising in the actual performance of marketing activities.

• Target consumers remains at the center of any marketing process.

Factors Affecting the Marketing Planning

A large number of factors affect the marketing planning. These factors are as follows

Internal Factors

Internal factors are those factors that arise in the enterprise itself. These factors include the following

• Size of the company.
• Risk bearing capacity of the enterprise.
• Financial resources of the enterprise.
• Organisational structure of the enterprise.
• Technical knowledge available with the enterprise.
• Channel of distribution.

National Factors
These factors include the following

• Population of the country and its regional distribution.
• National income of the country.
• Distribution of national income.
• Sectoral distribution of national income.
• Price trends in the country.Industrial policy of the country.
• Trade policy.

International Factors

These factors include the following:

•  International monetary system.
• International stability and peace.
• Scientific and technical developments in the world.

Tasks Performed in Marketing Planning

The major tasks performed in marketing planning are

• Environmental Appraisal
  
  • Analyzing the environment and spotting the opportunities and threats.
  • Analyzing the market and customer.
  • Analyzing industry and competition.
• Internal Appraisal of the Unit
  • Analyzing the strengths and weakness of the unit.
  • Analyzing the health and status of the different products.
  • Analyzing the competitive advantages and core competencies of the firm.
• Fixing the Marketing Objectives of the Unit
  • Assessing the current performance of the unit in the key areas.
  • Establishing measurable, clear-cut and explicit goals in each key area.
  • Shortlisting the areas in which marketing objectives have to be set.
• Developing the Marketing Strategy
  • Selecting the target market.
  • Deciding the positioning strategy.
  • Developing the marketing mix.
• Developing the Functional Plans of Marketing
  • Product plan and production plan formulation.
  • Sales forecasting.
  • Channel planning.
  • Sales promotion planning.
  • Advertising planning.

Process of Sales Forecasting

1. Setting goals for forecasting
2. Gathering data
3. Analysis of data
4. Choosing the best method
5. Forecasting
6. Evaluation of forecasting outcomes

Functions of Sales Forecasting

1. Sales forecasting forms the backbone of marketing.
2. It provides numbers regarding the sales.
3. It provides vital clues regarding customer’s tastes, preferences and needs.
4. It helps the firm to handle its marketing planning and marketing strategy formulation.
5. It helps the firm to develop its budgets and attain its marketing objectives.

Tit-Bits

• Market share means percentage share of business of the company as compared to peers.
• A fall in the market share implies competition has increased.
• Market share can be increased by increasing the sales.
• The potential market is the set of consumers who are buying the company’s products. It is based on future trading.
• A ‘benchmark’ means a standard value set for comparison between the competitors.

Check Your Skills

1. A marketing plan does not have to be

1. simple
2. clear
3. complex
4. lengthy
5. Both ‘3’ and ‘4’

2. A marketing plan specific

1. products
2. markets
3. staffs
4. actions
5. None of these

3. The marketing planning process includes

1. goal setting
2. analysing the current situation
3. creating the marketing strategy
4. allocating marketing resources and monitoring
5. All of the above

4. Goal setting includes

1. mission
2. corporate objectives
3. Both T’ and ‘2’
4. marketing audit
5. None of the above

5. Which of the following remains at the center of any marketing process?

1. Target consumers Product
2. corporate objectives
3. Price
4. Promotion
5. None of these

6. One of the key goals of the implementation function in marketing management is to

1. carry out the set plans
2. take corrective measures
3. construct sales budget
4. introduce a new product
5. None of the above

7. Factors affecting the marketing planning include

1. internal factor
2. national factor
3. international factor
4. All of these
5. None of these

8. The internal factors affecting marketing plan include

1. size of company
2. financial resources of company
3. channels of distribution
4. All of the above
5. None of the above

9. Analysing the current situation includes

1. marketing audit
2. SWOT analysis
3. marketing assumption
4. All of the above
5. None of the above

10. Which of the following is are the importance of marketing planning?

1. To offset future uncertainties
2. Economy in operation
3. Helpful in coordination
4. Helpful in control
5. All of the above

11. Which of the following is are the element of marketing planning?

1. Budget
2. Strategy
3. Schedule
4. All of these
5. None of these

12. “Planning is deciding in the present what to do in the future” who said this?

1. Philip Kotler
2. Bartle
3. Stanton
4. KL Keller
5. None of these

13. The international factors affecting the marketing plan include

1. International Monetary System
2. International Stability and Peace
3. Technical Development in the World
4. Scientific Development in the World
5. All of the above

14. The elements of marketing planning include

1. policies
2. procedures
3. programmes
4. rules
5. All of the above

15. Creating the marketing strategy includes

1. marketing objectives and strategies
2. forecasts of expected results
3. create alternative plans
4. All of the above
5. None of the above

16. The process of allocating marketing resources and monitoring include

1. marketing budget
2. detailed action plan
3. Both ‘1’ and ‘2’
4. marketing audit
5. SWOT analysis

17. Which of the following is are the feature of a marketing plan?

1. Generate a unique selling proposition
2. Determine the optimal marketing budget
3. Estimating the marketing return on investment
4. Identify SWOT
5. All of the above

18. The national factors affecting marketing plan include

1. population of country
2. national income of country
3. trade policy
4. All of the above
5. None of the above

19. Marketing plans are used for

1. doing research by marketing students
2. planning departments
3. purchase of consumable items from retail outlets
4. All of the above
5. None of the above

20. Which of the following is the element of marketing plan?

1. Marketing programme
2. Completion schedule
3. Statement of goals
4. AH of the above
5. None of the above .

21. Marketing planning is concerned with

1. the identification of resources that are available and their allocation to meet specified objectives
2. selling
3. financing
4. managing
5. All of these

22. Market potential is based on

1. future trading
2. production and market planning
3. award
4. profit
5. All of the above

23. Marketing plan helps in [SBl Clerk 2008]

1. better lead generations
2. better systems .
3. better results
4. improve balance sheet
5. better customer service

24. For effective marketing, the salesmen should have which of these qualities?

1. Creativity
2. Team spirit
3. Motivation
4. Effective communication skills
5. All of the above

25. Which among the following feature of good forecasting mode? [SBI Clerk 2008]

1. Accuracy
2. Simplicity
3. Economy
4. Availability
5. All of these

26. Market plan is a [SBI Clerk 2009]

1. selling process
2. year-end-budget
3. calendar
4. business document for marketing strategies
5. All of the above

27. Market plan is [SBI Clerk 2009]

1. an action plan for day-to-day marketing
2. effective selling steps
3. effective buying steps
4. a comprehensive document for marketing strategies
5. All of the above

28. Market information means [PNB PO 2010; SBI Clerk 2008]

1. knowledge level of marketing staff
2. information about marketing staff
3. information regarding share market
4. knowledge of related markets
5. All of the above

29. A marketing plan is necessary for [SBI PO 2011]

1. having a focussed approach to marketing
2. to decide marketing strategies
3. to decide product strategy
4. to decide advertising strategy
5. All of the above

30. Marketing strategies mean [SBI Clerk 2012,11]

1. ideas for new employment
2. technique for mergers
3. methods to improve marketing activities
4. more hits per ATM
5. networking

31. Good marketing strategy envisages good and proper [SBI Clerk 20121

1. product distribution
2. networking of branches
3. high pricing
4. placement of counter staff
5. relationship management

32. The first step of marketing is

1. production work
2. planning work
3. receiving feedback
4. telephone calls
5. sending E-mails

33. Sales forecasting means

1. to sale product
2. to storage product
3. the quantity of sales that to be sold in future
4. All of the above
5. None of the above

34. The type of forecasting is selected on the basis of

1. degree of accuracy
2. availability of data
3. time horizon
4. product positioning
5. All of these

35. Sales forecast can be based on which of the following information?

1. What customers say about the product
2. What customers are actually doing
3. What customers have done in the past
4. All of the above
5. None of the above

36. The types of sales forecasting include

1. micro forecasting
2. macro forecasting
3. Both ‘I’ and ‘2’
4. minor forecasting
5. major for asting

37. The market is the set of consumers with a sufficient level of interest in a market offer.

1. potential
2. target
3. penetrated
4. available
5. None of these

38. Which of the following provides the backbone to marketing?

1. Sales forecasting
2. Profit forecasting
3. Market targeting
4. Market segmentation
5. None of the above

39. Micro forecasting determines

1. product’s market share
2. price’s market share
3. place’s market share
4. product’s price
5. None of the above

40. Macro forecasting is concerned with forecasting markets in

1. fragmentation
2. segmentation
3. totality
4. partiality
5. None of the above

41. The analytical and statistical method of sales forecasting include

1. extrapolation method
2. moving average method
3. time series analysis
4. regression analysis
5. All of the above

42. Sales forecasting involves [SBI Clerk 2008]

1. sales pricing
2. sales planning
3. distribution channels
4. All of the above
5. None of the above

43. Sales forecasting involves study of proper selling price [SBI PO 2009]

1. sales planning
2. distribution outlets
3. consumer needs and demands
4. All of the above

44. ‘Benchmark’ means [SBI Clerk 2012]

1. sales performance measurement
2. marks given to sales persons
3. appraisal
4. standard values for comparison
5. autantion

45. Market share means [SBI Clerk 2012,10]

1. share capital of the company
2. staff strength of the company
3. employees stock option
4. share price quoted in the market
5. percentage share of business of the company as compared to peers

46. Market share can be increased by increasing [SBI Clerk 2012, 11]

1. raw material cost
2. the staff strength
3. the sales
4. the sales staff
5. competition

47. Market size also means [SBI Clerk 2012,11]

1. market planning
2. market pricing
3. market space
4. market distribution
5. market channel

48. A fall in the market share implies[SBI Clerk 2012]

1. sales have gone up
2. profit has gone up
3. prices are eratic
4. competition has increased
5. business is wound up

Answer key