Management and Marketing Report
A
Project Report
on
Management and Marketing
Submitted to:
Mr. Muhammad Sarmad Ali
Submitted by:
Mr. Muhammad Usman Ahmad
University of Education
Master in Business Administration (1.5)
Dated: 10-02-2019
Management and Marketing
1 Management:
The word management can be defined as follows;
“The process of dealing with or controlling things or people.”
The concept of management is as old as the human race itself. The concept of ‘family’ itself required that life be organized and resources of food be allocated in a manner so as to maximize the utility of such resources. Taking proper steps to protect the family from attacks by wild animals, planning on where to go fishing and hunting and whom to go with, organizing these groups into chiefs and hunting and fishing bands where chiefs gave directions, and so on, are all subtle ingredients of management and organization.
A study of various people around the world shows good examples of organizational structures and organizational evolution over the years. A village open market in a tribe and a large department store in a modern city serve the same needs in a similar fashion, which is putting things together that people need. While the tribal organization was simple in nature, the modern organization is much more sophisticated and complex with many technological innovations. However, the basic form of management and organizational structure seem to have existed since the beginning of organized human activity.
Many management thinkers have defined management in their own ways, for example;
“A set of activities directed at the efficient and effective utilization of resources in the pursuit of one or more goals.” (Van Fleet and Peterson)
“Working with human, financial and physical resources to achieve organizational objectives by performing the planning, organizing, leading and controlling functions.” (Megginson, Mosley and Pietri)
“Management is a problem solving process of effectively achieving organizational objectives through the efficient use of scarce resources in a changing environment.” (Kreitner)
“Management is an art of knowing what to do, when to do and see that it is done in the best and cheapest way.” (F.W. Taylor)
“Management is an art of getting things done through and with the people in formally organized groups. It is an art of creating an environment in which people can perform and individuals and can co-operate towards attainment of group goals.” (Harold Koontz)
1.1 Functions of Management:
Management is a set of principles relating to the functions of planning, organizing, directing and controlling, and the application of these principles in harnessing physical, financial, human and informational resources efficiently and effectively to achieve organizational goals.
The functions of management consist of five basic activities: planning, organizing, motivating, staffing, and controlling.
1.1.1 Planning:
Strategic Management process cannot be completed without strategy formulation means without planning, it is impossible to have strategic management.
Looking ahead into the future and predict possible trends or occurrences which are likely to influence the working situation is the most vital quality as well as the job of a manager.
Planning means setting an organization’s goal and deciding how best to achieve them. Planning is decision making, regarding the goals and setting the future course of action from a set of alternatives to reach them.
Planning consists of all those managerial activities related to preparing for the future of an organization. The main and foremost tasks to be done in planning include predicting, establishing and setting objectives, building strategies for achieving the established objectives, defining the rules and policies for the organizational growth, and setting goals.
1.1.2 Organizing:
“Organizing can be defined as the process by which the established plans are moved closer to realization.”
Once a manager set goals and develops plans, his next managerial function is organizing human and other resources that are identified as necessary by the plan to reach the goal. Organizing involves determining how activities and resources are to be assembled and coordinated.
The organization can also be defined as an intentionally formalized structure of positions or roles for people to fill in an organization.
Organizing, then, is that part of managing which involves: establishing an intentional structure of roles for people to fill in the organization. It is intentional in the sense of making sure that all the tasks necessary to accomplish goals are assigned to people who can do the best. The purpose of an organization structure is to create an environment for best human performance.
The structure must define the task to be done. The rules so established must also be designed in the light of the abilities and motivations of the people available.
1.1.3 Staffing:
Staffing is related to organizing and it involves filling and keeping filled, the positions in the organization structure. This can be done by determining the positions to be filled, identifying the requirement of manpower, filling the vacancies and training employees so that the assigned tasks are accomplished effectively and efficiently.
The managerial functions of promotion, demotion, discharge, dismissal, transfer, etc. Are also included with the broad task “staffing.” staffing ensures the placement of the right person at the right position. Basically staffing is deciding where decisions will be made, who will do what jobs and tasks, who will work for whom, and how resources will be assembled.
1.1.4 Directing:
Managerial function which stimulates the organizational methods to work competently for achievement of organizational purposes. Directing can be defined as guiding the activities of organization members in the direction that helps the organization move towards the fulfillment of the goals.
The purpose of directing is to increase productivity. Human-oriented work situations usually generate higher levels of production over the long term than do task oriented work situations because people find the latter type distasteful.
1.1.5 Controlling:
Controlling consist of activities, like; measuring the performance, comparing with the existing standard and finding the deviations, and correcting the deviations.
Control activities generally relate to the measurement of achievement or results of actions which were taken to attain the goal.
Some means of controlling, like the budget for expenses, inspection records, and the record of labor hours lost, are generally familiar. Each measure also shows whether plans are working out.
If deviations persist, correction is indicated. Whenever results are found to differ from the planned action, persons responsible are to be identified and necessary actions are to be taken to improve performance. Thus outcomes are controlled by controlling what people do. Controlling is the last but not the least important management function process. It is rightly said, “Planning without controlling is useless”. In short, we can say the controlling enables the accomplishment of the plan.
All the management functions of its process are inter-related and cannot be skipped.
2 Marketing:
Marketing is the activity, set of institutions, and processes for creating, communicating, delivering, and exchanging offerings that have value for customers, clients, partners, and society at large.
2.1 Concepts of Marketing:
There are five different orientation of marketing management;
1. Production Concept
2. Selling Concept
3. Product Concept
4. Marketing Concept
5. Social Marketing Concept
2.1.1 Production Concept:
The production concept is based on the approach that a company can increase supply as it decreases its costs. Moreover, the production concept highlights that a business can lower costs via mass production. A company oriented towards production believes in economies of scale (decreased production cost per unit), wherein mass production can decrease cost and maximize profits. As a whole, the production concept is oriented towards operations.
2.1.2 Product Concept:
This concept asserts on quality of the product no matter whatever the price is or availability of the product is tending to be. In order to produce a high quality product the cost of manufacturing such product increases resulting in the increase of price of the product as well.
2.1.3 Selling Concept:
This concept focuses on increasing sales of the product regardless of the quality of product or customer satisfaction. This philosophy emphasis on making every single sale possible at every cost. This concept is followed when a company want to sell its products in a much aggressive way.
2.1.4 Market Concept:
A company that believes in the marketing concept strongly emphasis on consumer. They try to predict the customer needs and desires and the financial position and status of the consumers. The more they will know about their customers and their needs it will be easier to assess their sales in the market and demand of product.
By focusing on the needs and wants of a target market, a company can deliver more value than its competitors. The marketing concept emphasizes the
“pull” strategy”. This means that a brand is so strong that customers would always prefer your brand to others’.2.1.5 Social Marketing Concept:
The societal marketing concept calls upon marketers to build social and ethical considerations into their marketing practices. They must balance and juggle the often conflicting criteria of company profits, consumer want satisfaction, and public interest.
2.2 Functions of Marketing:
Marketing can be described as the process of defining, anticipating, creating, and fulfilling customers’ needs and wants for products and services. There are seven basic functions of marketing:
1. Financing
2. Pricing
3. Market Research
4. Product and Service Planning
5. Distribution
6. Promotion
7. Customer Analysis
2.2.1 Financing:
It takes money to make money. As a business owner, an important function of marketing a product is finding the money through investments, loans, or your personal capital to finance the creation and advertising of your goods or services.
2.2.2 Pricing:
Setting the correct price for your product or service can be a challenge. If you price is too high, you might lose customers, but if you price it too low you might be robbing yourself of profits. The “right” price normally comes through trial and error and doing some market research.
2.2.3 Market Research:
Market research is about gathering information concerning your target customers. Who are the people you want to sell to? Why should they buy from you as opposed to a rival business? Answering these questions requires that you do some on-the-ground observation of the market trends and competing products.
2.2.4 Product and Service planning
Once you’ve determined the target market and set the price of your product or service, the goal becomes to effectively manage the product or service. This involves listening to customers, responding to their wants and needs, and keeping your products and services fresh and up to date.
2.2.5 Distribution:
Distribution is about deciding how you’ll get the goods or services you want to sell to the people who want to buy them. Having an idea for a product is great, but if you aren’t able to get that product to the customers you aren’t going to make money. Distribution can be as easy as setting up shop in the part of a city where your target customers are, but in an increasingly interconnected world, distribution more often than not now means that you’ll need to take your products or services to the customers.
2.2.6 Promotion:
Most business owners are familiar with the idea of promotion. Advertising your products and services is essential to attracting new customers and keeping existing customers coming back. As the marketplace changes, you’ll want to respond appropriately by tailoring your promotion messages to social media, by sticking with more conventional outlets, or by using a mix of the old and new.
2.2.7 Customer Analysis:
While we tend to think of selling and marketing as being closely linked, selling is last on the list of the seven functions of marketing. This is because selling can happen only after you’ve determined the wants and needs of your customer base and are able to respond with the right products at the right price point and time frame.
3 Relationship between Management and Marketing
Marketing is a big concept, which entails many activities. The process starts with identifying customer needs for a particular service or product, then continues by producing the product with the appropriately defined qualities, determining the pricing based on market dynamics, promoting the product and finally stocking the product for sale. Of course, the marketing processes cannot be accomplished without making sure that the specific activities involved are efficiently completed, which involves the concept of management. Management deals with the functions of planning, organizing, staffing, directing, coordinating, reporting and budgeting. Management is quite broad, and some aspect of it will be employed within each marketing activity.
Some very vital components in management include planning, organizing and monitoring. Planning for future tasks and producing action plans is a managerial task, as is organizing, which involves setting up resources to be used in executing the plans and ensuring their optimization. Monitoring and control involve overseeing the progress of the plan’s execution, and ensuring that the plan’s scope is maintained.
Management is split into branches, namely HR management, Operations management, Strategic and Marketing management, and Financial and Information technology management. This means that “marketing” is a branch within management. Marketing’s role in management is very profound, as it is through marketing that the company creates relationships with its customers. Marketing activities aim to focus on customer needs, in order to create valuable products. Marketing aims to invent products that consumers will be willing to buy, and find affordable. It’s a very vital aspect to ensure a company’s survival. As a result, a company must ascertain consumer demand for its own future viability. Contemporary marketing in companies is customer focused, and customer demands are the focus of a company’s marketing strategy.