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The principle of Marketing Management is very simple. The firm under-

  stands her customers, and satisfies their needs and demands. In this process of efficiently serving her customer the company's costs are lowered and reasonable profits are earned.

                 OR

  The Basic Principle of Marketing-Management could be defined as per-

  forming those functions so that the right product is sold in the right

  quantities at the right place, at the right price, at the right time.

  Therefore, it efficiently serves customers and earns a reasonable and just profit.

.Right Quantity

We have called that products are like packages of utilities. How many

units may be desired by the customer, depends upon the customer and actually on his pocket, i.e. how much money he has and how does he allocate

his money, (Budget constraint), in order to maximize his utility].

Whatever the number of units of utility or quantity desired by the customer is the right quantity.

This is also the demand for the firm product(s), and this demand is the

chief determinant of the many other functions of the firm such as

storage space, the level of inventories, financing required, size of

operations, etc. The right quantity is the quantity of a product, which

maximizes the consumer's utility. For a firm, it is the realized demand for

its product.

The second, analytical focus, dissect, or analyses individually, each

component of a marketing management system. The commodity focus means

analysis of the product or service provided by the firm. The institute-

national focus implies general knowledge about society and its cultural, social, religious, and historical values. For example, a U.S.A.

multinational corporation selling products in Saudi Arabia must have

substantial institutional information about Muslim traditions if the

firm wants to be successful in that country. The functional focus means

an analysis of actual systems, procedures, and methodologies of all

activities. The management focus is to coordinate all activities in

the short and long-run of company operations. Finally, the social focus

implies, that the firm in the process of fulfilling consumer's needs

and wants works for the general welfare of society.

3.1 Basic Principle

  The principle of Marketing Management is very simple. The firm under-

  stands her customers, and satisfies their needs and demands. In this process of efficiently serving her customer the company's costs are lowered and reasonable profits are earned.

                 OR

  The Basic Principle of Marketing-Management could be defined as per-

  forming those functions so that the right product is sold in the right

  quantities at the right place, at the right price, at the right time.

  Therefore, it efficiently serves customers and earns a reasonable and

  just profit.

  Let us now discuss each of these elements in detail.

3.2 Right Products

  From a consumer point of view, the right product is such that gives the desired satisfaction. The product may have a primary utility, e.g.

  food, clothes, shoes, house, transport; or of a lesser utility such as

  aesthetic utility, e.g. fashion clothes, jewelry, ornaments; or re-

  creational or amusement utility e.g. movies, circus, cricket match or

  other entertainments.

  The idea is that a product is a package of utilities and if the product is right it must satisfy the customer's utility.

  Historically, the main activity of business was to produce a product  (such as clothes, shoes, machines, etc.) and then sell it. This was (such as clothes, shoes, machines, etc.) and then sell it. This was rather a primitive or an old view of marketing, i.e. selling things. In the old days, the businesses were mainly concerned with selling things, with disregard to consumers and environments. This meant that the consumers and the businesses were two alienated and different groups. How- ever, as society develops and moves towards modernism, advances in selling techniques take place. Selling does not remain an isolated activity of the sellers. It integrates consumer's behavior and management techniques which result in a marketing process. Thus, as progress

n the old days, the businesses were mainly concerned with selling things, with disregard to consumers and environments. This meant that the consumers and the businesses were two alienated and different groups. How- ever, as society develops and moves towards modernism, advances in selling techniques take place. Selling does not remain an isolated activity of the sellers. It integrates consumer's behavior and management techniques which results in a marketing process. Thus, as progress, with disregard to consumers and environments.